Variable annuities can help protect your income from market volatility and provide a guaranteed retirement income stream for life through annuitization or an optional guaranteed lifetime withdrawal benefit. Schwab offers a choice of two low-cost1 variable annuities, along with personal guidance to help you choose the one that best meets your retirement income needs.
Talk to us about variable annuities.
Find a Schwab Financial Consultant near you or call an Annuity Consultant at 888-311-4889 (option 2).
Compare Schwab's variable annuities.
|Details||Straightforward design offers three investment options which are all GLWB eligible. More information.||Dual-segment design offers you flexibility to shift between tax-deferred growth potential and income protection as your needs change.4
|Base annuity fee|| 0.60%
Optional Purchase Payments Death Benefit 0.20%
Optional Stepped-Up Death Benefit 0.40%
|0.65% if purchased with return of account value death benefit
0.85% with return of premium death benefit
|Underlying investment costs||0.66 to 0.74%5||Average subaccount net expense by segment as of May 1, 20165
|| 0.80% Individual
Charged against the Protected Payment Base.
|1.00% Individual and Joint
Charged against the covered fund value.
|Annual guaranteed income8||Beginning at age 65 you can receive 5% of the Protected Payment Base for the single life rider and 4.5% for the joint life rider.||Beginning as early as age 59½ , you can begin receiving annual withdrawals ranging from 3.5-7.0% of the Benefit Base depending on age and single or joint life. See details.|
|The guaranteed lifetime withdrawal benefits referenced above are optional riders for which you will incur an additional charge, as shown above. The Protected Payment/Benefit Base on which the guaranteed lifetime income is based is not a contract value, cannot be accessed like a cash value, and cannot be left to your beneficiaries as a death benefit. Additionally, a GLWB will not preserve your contract value, which will decrease with each withdrawal until it reaches zero, although payments under the terms of the rider will still continue for life. Restrictions and limitations apply. See the prospectus for details.|
|Return of account value||Beneficiaries receive any remaining contract value, less premium taxes prior to annuitization.||Beneficiaries receive current account value (less premium taxes). Available for those age 85 or under at time of purchase.|
|Optional death benefits|| If protecting your beneficiaries is a priority, you can purchase one of two optional death benefits for an additional fee at the time you purchase the annuity. These optional death benefits are available for purchase to owners and annuitants 75 years or younger. Cannot be combined with the GLWB option.
||Beneficiaries receive total contributions (less the proportional impact of any distributions, withdrawals, and premium taxes) or the contract value (less premium taxes), whichever is greater. Available for those age 80 or under at time of purchase. Additional cost 0.20%.|
|Investments||Three broadly diversified portfolios to simplify retirement investing.||A wide range of investment options providing investment flexibility.
|Issuer||Pacific Life Insurance Company
In New York, Pacific Life & Annuity Company
|Great-West Life &
Annuity Insurance Company
In New York, Great-West Life & Annuity Insurance Company of New York
|Financial strength rating9||Pacific Life Insurance Company and Pacific Life & Annuity Company10||Great-West Life & Annuity Insurance Company
Great-West Life & Annuity Insurance Company of NY11
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Annuity Frequently Asked Questions
A variable annuity is a long-term investment for retirement that can provide guaranteed lifetime income, may have guaranteed death benefit options, has a variety of investment options, and provides tax-deferred growth potential. Many variable annuities also offer an optional guaranteed lifetime withdrawal benefit (GLWB), for an additional cost, that provides protection of lifetime guaranteed income for you and your spouse. Variable annuities with an optional death benefit can provide you with the confidence in knowing your assets are protected for your beneficiaries for an additional cost.
Note: A GLWB is not a contract value and is not available for withdrawal like a cash value. The actual contract value will deplete with each withdrawal.
Variable annuities offer benefits that can help you reach your retirement goals and maintain your standard of living when retired. The income from these types of annuities can provide regular income for years, or even for life.
For variable annuities you will typically see insurance charges (pays for the guarantees that the insurance company provides), surrender charges (charge on an early withdrawal based on a the time period of the policy or cancellation of the policy), investment fees (pays for the management of the underlying investment options), and fees for optional living benefits or optional death benefits (fees that pay for the guarantees that the optional benefits provide). Variable annuities offered by Charles Schwab do not have surrender charges.
Withdrawals from an annuity will reduce the value of your annuity, and withdrawals of taxable amounts are subject to ordinary income tax. Withdrawals prior to age 59½ may be subject to a 10% Federal tax penalty.
The performance of the underlying investment options is subject to market fluctuation and are not guaranteed.
A Schwab Financial Consultant can help you determine which annuity might fit your retirement strategy.
If you are seeking the potential for asset growth before retirement with income protection and guaranteed lifetime income in retirement, variable annuities could be right for you.
A Schwab Financial Consultant can help you determine which annuity might fit your retirement strategy.
The Variable Annuity Expense Calculator helps you determine how much you might be able to save in fees by exchanging your current variable annuity to a Charles Schwab low-cost variable annuity1: Schwab Retirement Income Variable Annuity® and Schwab OneSource Choice Variable Annuity™. Use this calculator to get an idea about whether an exchange might be in your best interest, then for a more comprehensive assessment, talk with a Schwab consultant at your local branch. To speak with a Schwab annuity consultant, call 888-311-4889.
When considering an exchange, expenses are only one factor. Before replacing your current annuity, please also consider surrender charges on your existing contract, the potential loss of any guaranteed benefits, and differences in features, costs, services, and company strength as well as factors that could reduce or eliminate the benefit of the exchange.
There are three simple steps once you're on the Variable Annuity Expense Calculator page:
- Enter your existing annuity either by the annuity name or the insurance company.
- Select a Schwab Annuity.
- Analyze your expenses.
1. Base variable annuity fees of 0.60% for the Schwab Retirement Income Variable Annuity® and 0.65% for the Schwab OneSource Choice Variable Annuity™, as compared to the industry average of 1.34%, according to a February 29, 2016 Morningstar survey of 2,141 variable annuities. This does not include fees associated with underlying investment options or optional riders such as guaranteed lifetime withdrawal benefits and/or death benefits, as applicable.
2. Any withdrawals in excess of the specified annual amount will permanently affect future income.
3. Optional death benefits are not available if you elect the GLWB. If you purchase an optional death benefit, you will be unable to add the GLWB at a later date.
4. Money moved from the Investment to the Income Segment will incur the additional charges associated with the GLWB. Moving money from the Income Segment to the Investment Segment will result in a proportional reduction of your Benefit Base. You may also forfeit certain accrued benefits and be subject to repurchase restrictions.
5. For illustrative purposes only. As of May 1, 2016, the total annual operating expenses for the Schwab VIT Portfolios ranged from 0.66% to 0.74%. The investment adviser and its affiliates have agreed to limit the total annual portfolio operating expenses (excluding interest, taxes, and certain non-routine expenses) of the portfolio to 0.58% for so long as the investment adviser serves as adviser to the portfolio. This agreement is limited to the portfolio’s direct operating expenses and does not apply to acquired fund fees and expenses (AFFE). This agreement may only be amended or terminated with the approval of the portfolio’s board of trustees.
6. The net expense ratio of an investment is after the application of any waivers or reimbursements, which may be voluntary or contractual and may expire. For further details, please see the prospectus.
7. For Schwab Retirement Income Variable Annuity, subject to increase up to a maximum 1.50% for individual life and 1.75% for joint life. For Schwab OneSource Choice Variable Annuity subject to increase up to a maximum 1.50%.
8. Withdrawals of earnings are subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal tax penalty. For nonqualified contracts, an additional 3.8% tax may apply on net investment income.
9. Ratings do not apply to the performance of variable annuity subaccounts or any product or service not fully backed by the insurance company's claims- paying ability. Ratings are subject to change. There is no guarantee that current ratings will be maintained.
10. The Schwab Retirement Income Variable Annuity combines Schwab's expertise in low-cost financial services with Pacific Life's claims-paying ability and financial strength. Pacific Life Insurance Company and Pacific Life & Annuity Company
11. The Schwab OneSource Choice Variable Annuity combines Schwab's expertise in low-cost financial services with Great-West's claims-paying ability and financial strength. Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of NY
Variable annuities are sold by prospectus only. You can request a prospectus by calling 888-311-4889 (option 2) or you may view the Schwab Retirement Income Variable Annuity prospectus and the Schwab OneSource Choice Variable Annuity prospectus online. Before purchasing a variable annuity, you should carefully read the prospectus and consider the annuity's investment objectives and all risks, charges, and expenses associated with the annuity and its investment options.
The contract value of the annuity may be more or less than the premiums paid and it is possible to lose money.
Variable annuities are long-term investment vehicles designed for retirement purposes.
Withdrawals will reduce the death benefit amount in direct proportion to the percentage by which the contract value was reduced. This can increase or decrease the amount deducted from the death benefit.
Variable annuities are subject to a number of fees, including mortality and risk expense charges, administrative fees, premium taxes, investment management fees, and charges for additional optional features. Although there are no surrender charges on the variable annuities offered by Schwab, such charges do apply in the early years of many contracts.
Charles Schwab & Co., Inc., a licensed insurance agency, distributes certain insurance and variable annuity contracts that are issued by insurance companies not affiliated with Schwab. Not all annuity contracts are available in every state.
The Schwab Retirement Income Variable Annuity is issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. The contracts are sold exclusively by Charles Schwab & Co., Inc. ("Schwab") through its representatives, including both employees and independent contractors and their employees ("Schwab Financial Consultants"). Charles Schwab Investment Management, Inc. (CSIM) is the adviser for the underlying investment options. Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with Pacific Life Insurance Company, Pacific Life, and Pacific Life & Annuity Company.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. Only a financial consultant can advise if the product purchase and any subsequent action taken with regard to the product are in the client’s best interest.
GWFS Equities, Inc. is the principal underwriter for the Schwab OneSource Choice Variable Annuity (Form ICC14-J465/J465 Series), a flexible premium variable annuity contract issued by Great-West Life & Annuity Insurance Company (GWL&A). GWL&A is not licensed to do business in New York. This variable annuity contract is not available in all states. GWFS Equities, Inc. is a wholly owned subsidiary of GWL&A. In New York, the Schwab OneSource Choice Variable Annuity (Form J465ny Series) is issued by Great-West Life & Annuity Insurance Company of New York (GWL&A of NY). Charles Schwab & Co., Inc. is the selling broker-dealer and insurance agency and is not affiliated with GWL&A, GWL&A of NY, or GWFS Equities, Inc. (collectively "Great-West Financial®"). Great-West Financial® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York (GWL&A of NY), Home Office: NY, NY; and their subsidiaries and affiliates.
Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York do not offer or provide investment, fiduciary, financial, legal, or tax advice, or act in a fiduciary capacity, for any client unless explicitly described in writing.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York, and are issued in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.