Schwab Retirement Income Variable Annuity
Schwab Retirement Income Variable Annuity

Schwab Retirement Income Variable Annuity

Guaranteed income for life in any market.

Keep your retirement savings invested and secure a retirement income stream for life—no matter how your investments perform—with the Schwab Retirement Income Variable Annuity® and its optional Guaranteed Lifetime Withdrawal Benefit (GLWB).1

Questions about annuities? Contact an annuity specialist at 866-663-5241.

Key benefits

  • Guaranteed income for life.
  • Competitive, transparent pricing.2
  • Professionally managed investments from Charles Schwab Investment Management, Inc.
  • Tax-deferred growth potential for your retirement savings.
  • Access to your assets in case of emergencies or unexpected expenses. Keep in mind that if you make a withdrawal it will decrease your contract value and death benefit.3
  • Provide legacy protection for your beneficiaries with an optional Return of Purchase Payments Death Benefit or Stepped-Up Death Benefit.4 

NOTE: Optional death benefits and the GLWB are available for an additional charge.

Schwab Retirement Income Variable Annuity® is a variable annuity offered by Charles Schwab and issued by Pacific Life. 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.

Pacific Life Logo Pacific Life Logo Pacific Life Logo

Is a Schwab Retirement Income Variable Annuity right for you?

An annuity can help take the worry out of retirement income, but not all annuities are the same. This variable annuity could be a good fit for your retirement needs if:

  • You're within 10 years of retirement.
  • You believe you may live at least 20 more years once you begin making income withdrawals.
  • You have sufficient savings available for unexpected expenses, reducing the likelihood that you would need to make an unexpected excess withdrawal from your annuity.
  • Social Security and other predictable income may not be enough to cover your essential expenses.
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Use guaranteed income to help cover essential expenses

Schwab recommends that you cover essential expenses, such as health care, food, and housing with income from predictable sources. 

See how Bill and Mary, a nearly retired couple, used this approach in a sample retirement plan. You can find more retirement plan examples in the Schwab Retirement Income Variable Annuity brochure.


Portfolio options

A choice of three sophisticated variable insurance trust portfolios— the Schwab VIT Portfolios— provides the broad asset class and sector diversification required in today’s complex global economy5.

  • The portfolios are managed, monitored, and rebalanced by Charles Schwab Investment Management, Inc., one of the largest money management firms in the U.S.
  • Each portfolio, composed primarily of exchange-traded funds (ETFs), offers broad diversification through exposure to domestic and international stocks, fixed income, and cash investments, plus limited exposure to other asset classes such as real estate and commodities.6
  • Choose among three portfolios—balanced, balanced with growth, and growth—according to your risk tolerance and objectives.
  • You have the flexibility to switch between portfolios tax-free if your investment needs change over time.

Option 2

  • LOWER GROWTH POTENTIAL & RISK LEVEL

    Balanced

    Balanced Graph

    The Schwab VIT Balanced Portfolio aims to combine income and modest capital growth with less exposure to risk than the overall stock market.

  • MODERATE GROWTH POTENTIAL & RISK LEVEL

    Balanced with growth

    Balanced with growth graph

    The Schwab VIT Balanced With Growth Portfolio aims to combine income and slightly higher capital growth with a moderate level of exposure to risk.

  • HIGHER GROWTH POTENTIAL & RISK LEVEL

    Growth

    Growth graphic

    The Schwab VIT Growth Portfolio aims to provide greater capital growth with increased exposure to risk.


How does a Guaranteed Lifetime Withdrawal Benefit (GLWB) work?

With the Schwab Retirement Income Variable Annuity, you can secure lifetime income through annuitization or by purchasing the optional Guaranteed Lifetime Withdrawal Benefit (GLWB). The GLWB option allows you to lock in an annual retirement income equal to 5% of your contract's highest anniversary value for the single life rider (4.5% for the joint life rider) on any contract anniversary date after you purchased the rider. You can add the GLWB option on or after the date you purchase your annuity until age 85.

Your income can grow in up markets.

With the GLWB, you can stay invested in the market to help counteract the effects of long-term inflation—without jeopardizing future income. Here's a hypothetical example using a single life rider to help illustrate.

Key benefits Key benefits Key benefits

Key benefits

A. Lock in the base. Lock in your Protected Payment Base when you add the GLWB option to your Schwab Retirement Income Variable Annuity.

B. Upside potential. If your contract value is higher on your next anniversary date, your Protected Payment Base is stepped up and locked in at the new higher value.

C. Ongoing protection. Your Protected Payment Base equals your initial purchase payment if added at contract issue, or the value of your annuity contract on the date you add the GLWB. It can continue to step up to the highest contract value on any subsequent contract anniversary date (the date you purchased the annuity), but it never steps back down due to market performance. 

D. Guaranteed lifetime income. You can decide to start income withdrawals at any time after age 653—equal to 5% of your highest Protected Payment Base for the single life rider or 4.5% for the joint life rider.1 Your income withdrawals can even increase if your contract value rises and reaches a higher Protected Payment Base, but they won’t decrease if your contract value falls.

Note: The Protected Payment Base is not a contract value and is not available for withdrawal like a cash value. Your actual contract value and death benefit will decrease with each withdrawal.

Your income is protected in down markets.

A market downturn right before your retirement or in the first years of retirement could rob you of savings you’re counting on for income. The Schwab Retirement Income Variable Annuity gives you the option to protect your payment base. Here's a hypothetical example using a single life rider to help illustrate.

Key benefits Key benefits Key benefits

Key benefits

A. Lock in the base. When you purchase the GLWB, your Protected Payment Base is established and locked against market downturns.

B. Downside protection. Because your Protected Payment Base is the highest value your contract reaches on any contract anniversary date after the GLWB option is purchased, it is locked and protected against market losses.

C. Guaranteed lifetime income. When you begin taking income after reaching age 65,3 you can receive 5% of your locked-in Protected Payment Base for life (4.5% for joint life rider1)—even if market volatility, income withdrawals, and annuity fees reduce your contract value to zero.

Note: The Protected Payment Base is not a contract value and is not available for withdrawal like a cash value. Your actual contract value and death benefit will decrease with each withdrawal.


Costs and savings

With the Schwab Retirement Income Variable Annuity, you’ll have the satisfaction of knowing that your base annuity fees fall well below the industry average.2

  • You know exactly what you’re paying—fees are straightforward and fully disclosed.
  • There are no surrender charges or surrender periods if you decide to withdraw your money for any reason.3
  • You can fund your annuity with a minimum investment of $100,000. 
  • You pay less than half the average base variable annuity fee charged in the industry2.

Source: 1.15% industry average according to a September 2, 2020 survey of 2,990 variable annuities. This does not include fees associated with the optional death benefits, GLWB, or underlying investment options. 

Costs and savings Costs and savings Costs and savings

How much can you save?

Already own a variable annuity elsewhere? Talk to a Schwab annuity specialist to see how much you might save by exchanging your current variable annuity for a competitively priced annuity at Schwab.

Before exchanging your current annuity, you should consider a number of important factors that could reduce or eliminate the benefit of the exchange. These include surrender charges on your existing contract, loss of guaranteed benefits, and differences in features, costs, services, and company strength.

See more annuity fees

See more annuity fees

Questions? We're ready to help.