A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. You invest money in professionally managed investment portfolios, where it accumulates tax-deferred. Investment returns and the principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original investment. When you retire, your investment can be used to generate a stream of regular income payments that are guaranteed for as long as you live. In addition, variable annuities may provide a guaranteed death benefit for your beneficiaries. It is important to remember that annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.

When the time comes for you to use the benefits that are offered by a variable annuity it is important to remember that all guarantees including the optional benefits are backed by the claims-paying ability of the issuing insurance company and do not apply to the underlying investment options.

A Financial Representative can help you determine if a variable annuity is suitable for you. Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant when making important investment decisions. Prudential Annuities does not provide investment advice. The selections you choose are all dependent on your investment goals and your risk tolerance.

There are limitations and restrictions when making withdrawals. Withdrawals or surrenders may be subject to contingent deferred sales charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, ma​y be subject to an additional 10% federal income tax penalty, sometimes referred to as an additional income tax. Withdrawals reduce the account value and the living and death benefits proportionately.

The Prudential Premier® Retirement Variable Annuity is available at a total annual insurance cost of 0.85%, with additional fees related to the professionally managed investment options. Fees for the optional Highest Daily benefits are in addition to fees and charges associated with the basic annuity and are as follows: Highest Daily Lifetime Income – 1.00%; Spousal Highest Daily Lifetime Income – 1.10%. Additional fees such as withdrawal fees, transfer fees and administrative fees may also apply. Please see the prospectus for more information.

Premium Based Charge: This fee is only assessed during the first seven years, and the amount of the charge is based on the purchase payment amount (assessed quarterly on Purchase Payments subject to a CDSC).​

The Annual Equivalent of Premium Based Charge Percentage for the Total Purchase Payment Amounts are as follows:

• Less than $50,000 0.70%
• $50,000 or more, but less than $100,000 0.60%
• $100,000 or more, but less than $250,000 0.50%
• $250,000 or more, but less than $500,000 0.35%
• $500,000 or more, but less than $1,000,000 0.25%
• $1,000,000 or more 0.15%

Highest Daily benefits have certain investment, holding period, liquidity, and withdrawal limitations and restrictions. Optional benefits may not be available in every state. See the prospectus for more information.

When purchasing an annuity, it is important to remember that asset allocation does not ensure a profit or protect against a loss. Investment returns and the principal value of an investment will fluctuate so that an investor's units, when redeemed, may be worth more or less than the original investment. The value or price of a particular stock or other equity or equity-related security owned by a portfolio could go down and you could lose money. Additionally, fixed income investments are subject to risk, including credit and interest rate risk. Because of these risks, subaccount's share value may fluctuate. If interest rates rise, bond prices usually decline. If interest rates decline, bond prices usually increase. Certain asset allocation portfolios may use leverage, short sales, and derivatives or engage in other speculative practices within their alternative investments. These practices include a high degree of risk and may increase the risk, size, and velocity of investment losses. Although certain alternative strategies seek to reduce risk by attempting to reduce correlation with equity and bond markets, no guarantee can be given that such efforts will be successful. The fees and expenses associated with alternative investments are generally higher than those for traditional investments. Lastly, diversification does not assure against loss in a declining market.

It starts with our prudent product design where we manage risks in three important ways. First, we offer a broad selection of asset allocation portfolios that helps provide the potential for greaterreturns and helps us manage investment risk. Second, 10% of all purchase payments is automatically allocated to the Secure Value Account (SVA) - a fixed account that provides an annual guaranteed interest rate. You cannot make transfers into or out of the SVA. The SVA will earn interest daily at a crediting rate declared annually. And third, Highest Daily benefits use a predetermined mathematical formula, that is designed to help mitigate some of the financial risk associated with providing and managing your guarantees during all market cycles.

Highest Daily suite of benefits uses a predetermined mathematical formula to mitigate some of the financial risks we incur in providing the guarantees under the optional benefits through all market cycles. Each business day, the formula determines if any portion of your account value in the permitted subaccounts (asset allocation portfolios), including any Dollar Cost Averaging (DCA) Market Value Adjustment (MVA) options needs to be automatically transferred into or out of the AST Investment Grade Bond Portfolio (the "Bond Portfolio"). Amounts transferred by the formula depend on a number of factors unique to your individual annuity and include:

1. The difference between the account value and the Protected Withdrawal Value;
2. How long you have owned the benefit;
3. The amount invested in, and the performance of, the permitted subaccounts, the Bond Portfolio and the Secure Value Account and
4. The impact of additional purchase payments made to and withdrawals taken from the annuity.

The formula will not transfer amounts to or from the Secure Value Account. On any given day, no more than 30% of the account value in the permitted subaccounts (plus any DCA MVA options) may be transferred to the Bond Portfolio pursuant to the formula. Therefore, at any given time, some, most or none of the account value from the permitted subaccounts may be allocated to the Bond Portfolio. Transfers to and from the Bond Portfolio do not impact any income guarantees that have already been locked in. You may not allocate purchase payments or transfer account value into or out of the Bond Portfolio.

The formula could mean that you miss opportunities for investment gains in the permitted subaccounts while amounts are allocated to the Bond Portfolio. The formula's allocation of amounts to the Bond Portfolio, however, could also protect your account value from losses that may occur in the permitted subaccounts. Please note: We are not providing investment advice through the formula. See the prospectus for complete details.