Determining your income withdrawal percentage The withdrawal percentage is based on your age at the time you first elect to receive income withdrawals. Withdrawal percentages increase 0.10% for each age between the ages shown below. For example, if the owner is age 65 at the time of first income withdrawal, their withdrawal percentage on a single life would be 4.75%. Once you start income withdrawals, the withdrawal percentage will never change.
Let’s see how that works 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
3.25%
2.25%
60
4.25%
3.25%
70
5.25%
4.25%
80
6.25%
5.25%
90+
7.25%
6.25%
Benefit Base Your annuity’s Benefit Base is equal to all premiums plus a 10% first-year Benefit-Base bonus on premium paid, less withdrawals, compounded at 3% plus the weighted average of index and interest credits. It grows for up to 10 years, or 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 10% 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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