Determining your income withdrawal percentage The income withdrawal percentage is based on your age at the time you first elect to receive income withdrawals. It increases by 0.10% each age between the ages shown below. Once income withdrawals start, the percentage will never change.
Let’s see how that works out for single life and joint life income withdrawals:
Age of owner at first income withdrawal
Single life income withdrawal percentage
Joint life income withdrawal percentage
50 55 60 65 70 75 80 85
5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50%
4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50%
90+
Benefit Base Your annuity’s Benefit Base is equal to all premiums plus a 25% Benefit-Base bonus on first-year premiums paid, less withdrawals, compounded at 7.00% annually for up to seven years, or until the start of your income withdrawals, if earlier. 2 We use the Benefit Base only to calculate the income withdrawal amount — it’s not available at surrender, death or annuitization. After you start income withdrawals, the Benefit Base will be set equal to the Accumulation Value on each subsequent contract anniversary, if the Accumulation Value is higher. This means income withdrawal amounts can potentially increase from year to year. Additional premiums The Benefit Base will increase with any additional premiums, and will reflect a 25% bonus for all first-year premiums paid. You may not add premiums after you begin income withdrawals. Flexible income withdrawals You can start income withdrawals at any time after the first contract year and age 50 (both owners). Unlike annuitizing your contract, the IBR gives you the flexibility to stop and restart income withdrawals when you choose. Payments continue for life, even if your contract’s Accumulation Value is depleted. Income withdrawals may be taken monthly, quarterly, semi-annually or annually. After they start, the annual penalty-free withdrawal amount is the greater of 10% of the Accumulation Value or your income withdrawal.
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