GLWB Withdrawal Amount

Calculate glwb withdrawal amount from the supplied measurements.

Description

A guaranteed lifetime withdrawal benefit amount is modeled by multiplying a supplied benefit base by a withdrawal percentage.

A guaranteed lifetime withdrawal benefit amount is modeled by multiplying a supplied benefit base by a withdrawal percentage. Benefit base is a calculation basis, not necessarily cash value.^[1]

Calculate glwb withdrawal amount from the supplied measurements.

When to use GLWB Withdrawal Amount

Use this tool to calculate glwb withdrawal amount from the supplied measurements.

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.

How to use GLWB Withdrawal Amount and understand its results

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
Enter benefitBase, withdrawalRatePercent using the field table and calculation rules, then run the tool.
Read annualWithdrawalAmount. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
benefitBase	Benefit base	number	Required
withdrawalRatePercent	Withdrawal rate	number	Required

Enter finite values on the intended monetary and annual-rate basis. The shared percent-of helper accepts signed bases/rates and returns their product divided by 100.

annualWithdrawal=benefitBase×withdrawalRatePercent/100

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
annualWithdrawalAmount	Annual withdrawal (currency/year)	number

json

{
  "input": {
    "benefitBase": 200000,
    "withdrawalRatePercent": 5
  },
  "output": {
    "annualWithdrawalAmount": 10000
  }
}

Limitations and assumptions

No rider qualification, age schedule, benefit-base growth, fees or actual available withdrawal is determined.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use SPIA Payout: Calculate modeled SPIA payout from a caller-supplied payout rate. For a complementary task, use Surrender Charge: Calculate annuity surrender charge after a free-withdrawal allowance.

References

GLWB Withdrawal Amount — tool.io

Similar or alternative tools

SPIA Payout
Calculate modeled SPIA payout from a caller-supplied payout rate.
Surrender Charge
Calculate annuity surrender charge after a free-withdrawal allowance.