Annuities
4 months ago
Annuity GLWB rider — how does guaranteed lifetime withdrawal benefit actually work?
26
I'm 59 and looking at a variable annuity with a GLWB rider. The pitch: my 'income base' grows at a guaranteed 6% compound for 10 years even if the market does poorly, then I can withdraw 5% of that income base for life starting at 69. But the actual account value could be much lower than the income base. If I take 5% of a $500k income base ($25k/year) but the account only has $300k, what happens when the account runs out? Does the insurance company keep paying?
DR
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