Vanguard Applies for Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider

Vanguard is seen expanding variable annuity features with an SEC application for a guaranteed lifetime withdrawal benefit (GLWB).

The precise cost of the rider, which can apply to one owner or joint owners, and the payout rates at various age bands were left blank in the application, although Vanguard provided an example that set the rider cost at one percent of the income base. The minimum initial payment is $5,000 and a $25 annual fee is assessed when the account value drops below $25,000.

Source: On Wall Street

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