Variable annuities are long-term investment vehicles designed for retirement purposes and contain underlying investment portfolios that are subject to investment risk, including possible loss of principal. Before making any decision to switch to another annuity—including the Vanguard Variable Annuity—you should consider all costs—such as annual maintenance fees, surrender charges, fees for optional riders and death benefits—as well as the financial strength of the insurance carrier.
The Vanguard Variable Annuity doesn't have surrender charges. For non-Vanguard annuities, surrender charges shown in this calculator are based on Morningstar data as of May 2014. The surrender charge estimate assumes a single purchase of your current annuity. When a multishare schedule is provided for an annuity, we use a B-share schedule for our calculations. B-share annuities can impose surrender charges when you withdraw your money. Check with your current annuity provider to confirm the appropriate share class for your annuity.
The comparisons produced by this calculator are educational only; they aren't recommendations to buy or sell a particular annuity. They don't take into account your personal circumstances or other factors that may be important in making an investment decision. Consider your personal situation to determine which variable annuity is most appropriate for your needs.
This hypothetical example doesn't represent the return on any particular investment. It hasn't been independently verified by Vanguard. This information may not be copied or distributed.
If you take withdrawals from a variable annuity before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.
The Vanguard Variable Annuity is a flexible-premium variable annuity issued by Transamerica Premier Life Insurance Company, Cedar Rapids, Iowa (NAIC No. 66281), and in New York State only, by Transamerica Financial Life Insurance Company, Harrison, New York (NAIC No. 70688). Form No. VVAP U 1101 (in Florida, Form No. VVAP U 1101 (FL), and in New York, VVA NY 0208(R13)). GLWB Rider Form No. RGMB 43 0811 (in Florida, RGMB 43 0811 (SI)(FL), RGMB 43 0811 (JT)(FL), and in New York, RGMB 43 0811 (SI)(NY)(REV), RGMB 43 0811 (JT)(NY)(REV)). Return of Premium Death Benefit Rider Form No. VVA RP 0811 (in Florida, VVA RP 0811 (FL), and in New York, VVA RP 0811 (NY)(REV)) without agent representation. Policy and rider form numbers may vary by state and may not be available in all states. The Vanguard Group administers the Vanguard Variable Annuity for the issuer. Its variable annuity and investment costs rank among the lowest in the industry, according to Morningstar, Inc., December 2013. The Vanguard Group, Transamerica Premier Life Insurance Company, and Transamerica Financial Life Insurance Company do not provide tax advice. Investors are encouraged to consult a tax advisor for information on how annuity taxation applies to their individual situations.
On July 31, 2014, Monumental Life Insurance Company changed its name to Transamerica Premier Life Insurance Company. The name change may not be effective in all states.
This calculator is not approved for use in Oregon and may not be approved for advertising in Georgia, Mississippi, and Oklahoma.