Who Has Been Insulated?Variable annuity holders that are best positioned during this extreme market downturn are those with:
- a) a guaranteed withdrawal benefit who can withdraw 5% to 7% per year for life regardless of market performance
- b) that do not rely on income from the variable annuity above that 5% to 7%. For these folks, the account value, which fluctuates with market performance, is irrelevant. The withdrawal benefit could increase above the stated amount if the market increases, but that should be considered icing on the cake.