Why transfer your annuity?
The answer really comes down to costs.
A variable annuity has costs that other investments don't—such as mortality charges, administrative fees, and surrender charges. These fees are in addition to the underlying operating costs—the expense ratios—of the investments you choose.
Costs are one aspect of investing you can control—and if you evaluate your options carefully, there's no reason to pay more.
The average cost for the Vanguard Variable Annuity is 70% less than the industry average. That difference can save you an average of $1,700 a year in fees for every $100,000 you invest.§
Lower costs can lead to bigger investment returns
This hypothetical example assumes a 6% return on a $100,000 investment.
Source: Morningstar, Inc., as of December 2017.
Other considerations that may factor into your decision to transfer your variable annuity:
- Is the quality of service what you expect?
- Does the product meet your goals?
- Are you paying for benefits you won't use?
- Did you inherit an annuity with high costs?*
The Vanguard Variable Annuity advantage
With a Vanguard Variable Annuity, you receive some of the lowest costs in the industry offered through a diverse fund lineup and backed by a highly rated insurer.**
Diverse fund lineup
If your investment strategy or financial goals change over time, you can exchange assets among portfolios without paying a fee or triggering a taxable transaction.
You may decide to use your variable annuity as an income source in retirement. If so, you can purchase a rider for an additional fee to add to your contract at any time (up to age 91) that will allow you to start and stop payments according to your needs.
See how much you can save
Try our calculator to help you decide if transferring to the Vanguard Variable Annuity is the right move for you.
The Vanguard difference
A community of investors like you
You're in good company when you invest with Vanguard. Our community of 20 million investors knows what counts when they entrust their financial futures to us—integrity, fairness, and products and services with exceptional value.
How annuities work at Vanguard
We work for you
Our annuity specialists are licensed professionals who will walk you through the decision-making process—regardless of whether you transfer your annuity to us or stay with your current provider.
During your free annuity "checkup," we'll compare fees and other expenses, calculate your potential savings, and see if your contract is eligible for a 1035 exchange—a tax-free transfer from one company to another.
Our unbiased annuity specialists don't work for commissions so they only have your interests in mind.
Have you inherited an annuity?
You could save money by transferring your inherited annuity to a Vanguard Variable Annuity.
Managing your Vanguard Variable Annuity
There's a lot you can do online to manage your Vanguard Variable Annuity.
Our licensed annuity specialists are here to help.
Monday through Friday
8 a.m. to 8 p.m., Eastern time
INVEST IN THE VANGUARD VARIABLE ANNUITY
Choose from a diverse lineup of stock, bond, and money market portfolios.
A contract issued by an insurance company, which agrees to make payments to you based on the contract's value. The value varies based on the annuity's underlying investments.
A fee included in some annuity contracts that compensates the insurer for the risks it assumes in issuing the contract, such as the cost of death benefits, expenses of other insured income guaranteees, and administrative costs.
A fee that may be charged on withdrawals or surrenders from an annuity before annuity payments have begun.
The annual operating expenses of a mutual fund or an ETF (exchange-traded fund), expressed as a percentage of the fund's average net assets. It's calculated annually and removed from the fund's earnings before they're distributed to investors, directly reducing investors' returns. For example, if you had $10,000 invested in a fund with an expense ratio of 0.20%, you’d pay about $20 a year out of your investment returns.
This chart shows how costs can significantly impact returns on your annuity investment. It illustrates the growth of a $100,000 investment over 10, 20, and 30 years, factoring in a 6% annual return and annual investment costs—0.50% annually for the Vanguard Variable Annuity and 2.24% annually for the annuity industry average.
Over 10 years, the Vanguard Variable Annuity returned $170,329, compared with the annuity industry average of $142,781.
After 20 years, the Vanguard Variable Annuity returned $290,121, compared with the annuity industry average of $203,864.
By 30 years, the Vanguard Variable Annuity returned $494,161, compared with the annuity industry average of $291,080.
Usually refers to common stock, which is an investment that represents part ownership in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits.
A loan to a corporation, government, or government agency in exchange for regular interest payments. The bond issuer agrees to pay back the loan by a specific date. Bonds can be traded on the secondary market.
A mutual fund that seeks income and liquidity by investing in very-short-term investments. Money market funds are suitable for the cash reserves portion of a portfolio or for holding funds that are needed soon.
A type of investment that pools shareholder money and invests it in a variety of securities. Each investor owns shares of the fund and can buy or sell these shares at any time. Mutual funds are typically more diversified, low-cost, and convenient than investing in individual securities, and they're professionally managed.
A fee charged by a broker for buying and selling securities.
A fee charged by a company to purchase an investment product.
An investment option—offered by an annuity—that holds a range of underlying investments
A provision added to an insurance contract that offers more benefits at an extra cost.
The exchange of an annuity owner's assets from one company to another without incurring income taxes. The annuity must be funded with after-tax contributions to qualify.
To access your annuity online, log on to your account or register for online access if you haven't done so already.
Once you've registered, you can make exchanges between annuity portfolios online.
You can also log on to check the following:
- Your contract balances.
- The status of pending and processed transactions.
- Information on death benefit and Guaranteed Lifetime Withdrawal Benefit riders.*
- Statements and confirmations.
If you have any questions about your annuity, call one of our licensed specialists at 800-357-4720 Monday through Friday from 8 a.m. to 8 p.m., Eastern time. We're always happy to help.
footnote*Product guarantees are subject to the claims-paying ability of the issuing insurance company.