1. What is Variable Annuity Payout?

Variable annuity payout refers to the periodic payments received from a variable annuity contract during the distribution phase. The payout amount depends on the account balance and the payout factor determined by the insurance company.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Balance \) — Current account value of the annuity
• \( Factor \) — Payout percentage determined by the annuity contract

Explanation: The payout factor is typically based on the annuitant's age and the payment option selected.

3. Importance of Payout Calculation

Details: Calculating expected payouts helps in retirement planning by providing estimates of income streams from annuity investments.

4. Using the Calculator

Tips: Enter your current annuity account balance and the payout factor (as a percentage) from your contract. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What affects the payout factor?
A: Factors include the annuitant's age, gender, payment option selected (life only, joint life, period certain), and current interest rates.

Q2: Are variable annuity payouts guaranteed?
A: Unlike fixed annuities, variable annuity payouts may fluctuate based on the performance of the underlying investments.

Q3: How often are payouts made?
A: Typically monthly, but this depends on the contract terms you selected when annuitizing.

Q4: Can the payout amount change over time?
A: Yes, with variable annuities the payment amount can increase or decrease based on investment performance.

Q5: Are there tax implications?
A: Yes, portions of each payment may be taxable as ordinary income. Consult a tax professional for specifics.