11th May 2026

M&G: PruFund as an income engine

The purpose of this guide is to highlight how the PruFund range could be used for providing income to a client from different tax wrappers. It’s not designed to make specific recommendations. The guide assumes an investment in PruFund in totality where it’s used, whereas in practice it may be part of an ongoing strategy alongside other investments.

Understanding the client’s personal circumstances, assessing their attitude to risk and capacity for loss are a key part of the suitability process. However, we realise numerous other factors are considered when a client reaches retirement.

These include:

• sequencing of return risk,
• income and expenditure requirements,
• estimating a client’s life expectancy, and
• possibly calculating what a sustainable withdrawal rate could be, so funds are not
• eroded prematurely.

And in addition to everything we’ve already said above, you’ll continue to identify what’s essential income, alongside what might be classed as ‘lifestyle’ or ‘discretionary’. All in all, income drawdown is often a long-term commitment and will usually need regular reviews with you and your client to ensure their strategy remains appropriate.

All of this may form part of your Centralised Retirement Proposition (CRP) or
Centralised Investment Process (CIP).

The PruFund range has been a popular choice for many advisers to select, given the
smoothed nature of the returns, the diversification its multi-asset nature brings and the
predictability of the Expected Growth Rate (EGR).

EGRs reflect the long-term view of the funds growth and Unit Price Adjustments
(UPA) allow any necessary adjustments to help keep the fund growth on track, in line
with the EGR.

There may be occasions where the smoothing process is suspended for one or more
PruFund funds for a period of consecutive days, to protect the With-Profits Fund and
the clients invested in it.

The step by step guide to the PruFund smoothing process guide covers this in
more detail.

View guide here 

Investments, Partner Guides & Whitepapers