Faculty Publications

Title

How Well Does the Next Generation of Guarantee Riders Protect Your Income? Part 2 – Starting the Income Guarantee

Document Type

Article

Publication Date

11-13-2012

Abstract

Unlike traditional guaranteed lifetime withdrawal benefit riders on variable annuities (VA/GLWBs), the future payments from stand-alone income riders (SALBs) are tied to 10-year Treasury rates. That’s bad news for retirees, who may find their future benefits compromised if interest rates remain at historically low levels – regardless of how the stock market performs.