Explore Sample Verdara Lifetime Income Paths

Select an employee below to see how it works.

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Guaranteed Income
{{ gLo }} – {{ gHi }} a year
Payments start at age {{ retireAge }} and keep coming for life, even if the money in the account runs out.
Guaranteed income (at age {{ retireAge }}) {{ gRange }}
Income from liquid investments (not guaranteed) {{ lRange }}
Total Annual Income {{ tRange }}
+ Social Security & other savings
And that's not all

The figures above show income in the first year of retirement. Two things the Path also does are not counted in them:

The income can rise each year. Once payments begin, they grow by the interest credited each year. If markets have a bad year, income might not increase—but it won't go down or stop. If markets have a good year, income will likely increase.
Remaining account balance is inheritable. Guaranteed income payments are first made from accumulated assets, and once those are depleted an insurance company keeps paying the guaranteed income amount. If someone passes away before depleting their balance it can be inherited.
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  • Guaranteed income. This example assumes guaranteed income of {{ wdPctStar }} of the income base at age {{ retireAge }}. In this model, the income base is assumed to grow each year by the interest credited, multiplied by 1.5, plus an additional 2% a year from age 50 until retirement.
  • How interest is credited. In this illustration, half of the credited interest is assumed to come from a fixed 3% rate. The other half is modeled to follow the S&P 500, capped at 5% and assumed not to go below 0% — so in this model, this portion is not expected to lose value when markets fall. The insurer sets the fixed rate and the cap and may change them, which would change these assumptions.
  • How much moves over. The Path is assumed to target a maximum allocation of 60% in the guaranteed income product by retirement, phased in over the last 10 years in this model. Bonds are assumed to move first, and this illustration assumes money is not moved back out once transferred.
  • Two different values. The guaranteed income account is structured with an income base, used to calculate the yearly income, and a cash value, which reflects the money actually held in the account. In this model, the income base is assumed to be larger because it earns the extra credits described above. The 60% target is measured on the income base. Guaranteed payments are assumed to be taken from the cash value first; if the cash value is depleted, the insurer's contractual obligation is to continue payments for life, subject to the terms of the contract.
  • Income from liquid investments. This example assumes a 4% annual withdrawal, taken only from the money outside the guaranteed income account. The model assumes the cash value is not drawn on twice.
  • Costs. This illustration assumes 0.04% expense ratio for target-date funds during early career and 0.35% (annual) managed account fee from age 50 onward plus an estimated 0.05% blended expense ratio for underlying mutual funds in the portfolio. All are assumed to reduce the income figures shown above.
  • Fees on the guaranteed income account. This model assumes no explicit fee on the guaranteed income product when it is used to draw income via the Guaranteed Lifetime Withdrawal Benefit, based on current product terms. A fee of 50 basis points (0.50%) is assumed to apply upon liquidation, charged on the accumulation value, based on current product terms.
  • Other assumptions. This example assumes pay increases of 3.0% a year and a 4% annual withdrawal from the non-guaranteed portion. Today's dollar figures assume 2.5% inflation.
  • Money already saved. Each example assumes a starting balance approximating what someone saving that amount since age 25 would have accumulated. These are hypothetical examples, not survey data.
  • Staying with the employer. Each example assumes the employee continues contributing to the plan until retirement. Someone who stops contributing earlier would be expected to end up with less income under this model.
  • Ranges get wider the further away retirement is. The low end of the range is not intended to represent a floor or guaranteed minimum. In this model, roughly one run in four fell below it.
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