New Vanguard Variable Annuity With Guaranteed Lifetime Withdrawal Benefit Coming Soon
According to the Retirement Income Reporter, Vanguard is planning to launch a new variable annuity that features a guaranteed lifetime withdrawal benefit. The firm has filed an application with the Security and Exchange Commission for their approval.
The GLWB rider is expected to have a 1% fee, although exact fees and payout rates are unknown. Vanguard claims that this new annuity will be like its no-load, no surrender-fee variable annuity, except with a lifetime income benefit tacked on.
While this proposal could change significantly before it goes to market, it states that there will be a $25 annual fee if the account value drops below $25,000. As of now, the minimum initial investment will be $5,000.
