[CANNEX Research] Comparing the Performance of Annuities with Principal Guarantees: Accumulation Benefit in a VA versus FIA

Sponsored by New York Life

Consumers generally like the guaranteed protection of fixed indexed annuities (FIA). But what if they could get a comparable level of protection in a variable annuity? New research shows that a variable annuity (VA) with a guaranteed minimum accumulation benefit (GMAB) was more likely to have a higher upside than a FIA design with a rate cap in the majority of cases. In fact, an 8.25 percent annual point-to-point fixed indexed annuity cap rate is needed to match a VA with a GMAB.

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