Use of the guaranteed minimum withdrawal benefit option offered with variable annuities has been lower than originally expected.
Consultants at Ruark Consulting L.L.C., Simsbury, Conn., an actuarial consulting firm, come to that conclusion in a new study.
Ruark consultants analyzed 3 million policy years of experience data from 7 major VA issuers that was collected from January 2005 to June 2009.
When the consultants looked at owners whose annuities included a guaranteed lifetime withdrawal benefit, they found that only 1 in 5 are taking partial withdrawals. Among owners who are taking partial withdrawals, only 1 in 3 are taking the maximum amount allowed.
