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Variable Annuities

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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.

Guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company, not Schwab, and do not apply to the separate account or the underlying portfolios available with this contract.
 

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.

  Schwab Retirement Income Variable Annuity Schwab OneSource Choice Variable Annuity
Overview Schwab's lowest-cost variable annuity,1 streamlined to simplify investing. Offers an optional guaranteed lifetime withdrawal benefit (GLWB) to provide a base level of retirement income for life plus access to your assets2 and two optional death benefits.3 Flexible, low-cost variable annuity.1 Includes a wide variety of investment choices and two death benefit options. Offers optional guaranteed lifetime withdrawal benefit (GLWB) to provide a base level of retirement income for life plus access to your assets.2 
Costs Lower Low


 
Investments Three broadly diversified portfolios to simplify retirement investing. Over 85 investment choices representing over 30 OneSource fund families.
Minimum Initial Contribution $50,000 $5,000
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
Design    
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
  • Investment Segment allows you to participate in the growth potential of the market
  • Income Segment provides a guaranteed floor of retirement income with a GLWB

More information.
Costs Lower Low
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
  • Investment Segment: 0.91%
  • Income Segment: 0.64%
Optional GLWB7


 0.80% Individual
1.00% Joint
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. 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.

  • The Return of Purchase Payments Death Benefit provides your beneficiaries with the greater of the contract value or the total of purchase payments, adjusted for withdrawals. Additional cost 0.20% 
  • The Stepped-Up Death Benefit offers you the potential to lock in market gains for your beneficiaries. Additional cost 0.40%
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.
 
  • Choose one of three broadly diversified portfolios, each with a different risk profile.
  • Portfolios are managed, monitored, and rebalanced by Charles Schwab Investment Management, Inc., an affiliate of Schwab.
  • Investment Segment offers over 85 investment options managed by a variety of outside investment managers who participate in Schwab's OneSource program. You can select portfolios to tailor your asset allocation plan to meet your needs.
  • Income segment offers a balanced fund plus the GLWB.
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

Questions? We're ready to help.

Find a Schwab Financial Consultant near you.

You can also call a Schwab Annuity Consultant at 888-311-4889 (option 2).

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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:

  1. Enter your existing annuity either by the annuity name or the insurance company.
  2. Select a Schwab Annuity.
  3. Analyze your expenses.
Be sure to contact your Schwab consultant or call 888-311-4889 to speak with a licensed annuity specialist about whether you might benefit from a tax-free exchange.
 

Variable annuities are sold by prospectus only. You can request a prospectus by calling 888-311-4887 or by visiting schwab.com/annuity. Before purchasing a variable annuity, you should carefully read the prospectus and consider the investment objectives and all risks, charges, and expenses associated with the annuity and its investment options.  



Brokerage and insurance products: Are not deposits • Are not FDIC-insured • Are not insured by any federal government agency • Are not guaranteed by the bank or any affiliate of the bank • May lose value

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.