A GLWB rider guarantees a lifetime withdrawal percentage against a separate income base, for an ongoing annual fee deducted regardless of how the underlying investments actually perform.
How it works
The income base times the annual rider fee rate gives the yearly cost; multiplying that by the number of years held (assuming a flat income base) gives the total fee paid over the period.
What this does not include
This does not include income base step-ups, which many GLWB riders offer during a deferral period — a growing income base would raise the dollar fee over time even at a constant percentage rate, higher than the flat estimate shown here.
How to use this calculator
- Enter the income base, annual rider fee rate, and years held.
Frequently asked questions
Does the GLWB fee come out of my actual account value?
Yes — the fee is typically deducted from the contract’s actual account value, even though it’s calculated as a percentage of the separate income base.
What happens to the rider if I never need lifetime income?
The fees paid don’t refund — the rider is essentially longevity insurance, valuable specifically to those who end up needing income for longer than their account value would otherwise support.
How is a GLWB different from an income annuity (annuitization)?
A GLWB keeps the underlying account value accessible and potentially inheritable while still guaranteeing lifetime withdrawals; annuitizing typically converts the balance permanently into a income stream with no remaining account value.
