Turn your variable annuity into income for life
The Secure Income rider available through the Vanguard Variable Annuity creates an income you can't outlive, while providing growth potential with market protection.
What's the Secure Income rider?
Secure Income™—the optional Guaranteed Lifetime Withdrawal Benefit (GLWB) rider—can help ensure that you'll have the retirement income you need for the rest of your life. It combines the growth potential of the Vanguard Variable Annuity with an insurance company guarantee that your income will never drop below a certain level because of market fluctuations.*
Who should consider the Secure Income rider?
This rider could be a good fit for your investment needs if you want:
- Guaranteed lifetime income while retaining control of your assets.
- Withdrawals based on your life or joint lives (you and another person).
- Flexibility to start, stop, or skip withdrawals at any time.
- Protection from market downturns and potential benefits from market upturns.
Go in-depth ... Read our brochure to learn more about your options.
How the Secure Income rider works
What are my investment choices?
When you elect Secure Income, you can allocate your money to 1 of 3 designated investments.§
Conservative Allocation Portfolio
40% stocks/60% bonds
Moderate Allocation Portfolio
60% stocks/40% bonds
60%–70% stocks/30%–40% bonds
What's the insurance guarantee?
Your lifetime withdrawals will be protected against any investment losses resulting from an economic downturn. They'll never go down, even if the market drops significantly. And when the market goes up, your annual withdrawal amount may rise with it.
The Vanguard Variable Annuity with the optional Secure Income rider is issued by Transamerica Premier Life Insurance Company and, in New York State only, by Transamerica Financial Life Insurance Company. Both companies have high ratings for financial strength from leading independent rating agencies and stand behind the guarantee of payments for life.†
How do I take withdrawals?
With the Secure Income rider, you can wait and allow the money in your designated investments the opportunity to grow. Or you can start taking withdrawals anytime following the rider anniversary after the annuitant turns age 59 (based on the younger individual for the joint life option).
The amount you can withdraw each year is determined by your total withdrawal base (TWB) and your age when you start taking withdrawals. Here's how the TWB works:
- On the rider effective date, your TWB is set and locked in, based on the accumulated value in your designated investments.
- On each rider anniversary, your TWB is assessed. If the value of your investments has increased due to market gains, your TWB increases and locks in at a higher rate—offering you the opportunity to take higher annual withdrawals.
- Should market performance cause the value of your investments to decline, your TWB remains locked in, and your withdrawal amount won't decrease.
What's the maximum annual withdrawal amount?
There are limits to how much you can withdraw each year—the maximum annual withdrawal amount (MAWA). It's determined by multiplying your withdrawal percentage by your TWB. Using the table below, let's assume:
- You have $100,000 in your TWB on your first rider anniversary date.
- You and your spouse are both annuitants and are age 70.
- Your joint withdrawal percentage would be 4.50%.
Your MAWA would be $4,500, guaranteed never to decrease for the lifetimes of both you and your spouse (unless you exceed your MAWA). Plus, if your TWB increases, your benefit automatically goes up on the effective anniversary date of the Secure Income rider.
If you choose a joint life rider, the withdrawal percentages are based on the younger of the annuitant or annuitant's spouse when withdrawals begin.
Are withdrawals flexible?
Yes, you can start, stop, or skip withdrawals at any time as you decide what's best for you. You can also make multiple withdrawals each year, as long as the total amount doesn't exceed your MAWA.
As long as you don't exceed your MAWA, you'll receive guaranteed payments for life even if withdrawals deplete the accumulated value.
Are withdrawals taxed?
Yes, generally, withdrawals from annuities are taxed. Please consult a tax advisor for information on how annuity taxation applies to your situation.††
Can I access my investment?
Yes, with the Secure Income rider, you still have complete access to—and control of—your investment. Even if you've already started taking withdrawals from your Vangaurd Variable Annuity, shares of the principal can be redeemed at any time. However, changes in the share price and balance can affect future payouts.
How annuities work at Vanguard
We make it easy for you to purchase an annuity. We start with a free annuity "checkup" from an unbiased annuity specialist who doesn't work for commissions.
Already have an annuity with another company?
If you think you can save on an existing annuity, we can help you decide if transferring to the Vanguard Variable Annuity—and adding the Secure Income rider—are right for you.
Our licensed annuity specialists are here to help.
Monday through Friday
8 a.m. to 8 p.m., Eastern time
Save more for retirement
INVEST IN THE VANGUARD VARIABLE ANNUITY
Choose from a diverse lineup of stock, bond, and money market portfolios.
A provision added to an insurance contract that offers more benefits at an extra cost.
Investments in a retirement plan made with funds from an employee's paycheck before federal income taxes are deducted.
Investments in a retirement plan that come from the taxable portion of an employee's pay.
Transamerica started in 1904 as the Bank of Italy in San Francisco with the goal of making financial services available to everyone. Through mergers and acquisitions in the 1900s, Transamerica owned interests in banking, life insurance, and financial services, as well as the entertainment industry.
In 1999, Transamerica became part of Aegon N.V., one of the world's leading international financial organizations. Today, through a range of services that include life insurance, annuities, and retirement plans, Transamerica and its parent company operate in more than 20 markets worldwide, continuing to help clients secure their financial futures.
The Transamerica Pyramid, though no longer Transamerica Corporation headquarters, is an iconic symbol in the heart of San Francisco and is still depicted in the company's logo.
Generally, the person who receives income payments from the annuity. The annuitant's age is used to calculate the maximum annual withdrawal amount.
An amount equal to the initial purchase amount plus any additional premium payments received—less applicable fees, partial withdrawals, and premium taxes. The value also takes into account any changes in the value of the selected investments.
A fee charged by a broker for buying and selling securities.
The money you have invested in the major asset classes—stocks, bonds, and short-term or "cash" investments.