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The U.S. Government Accountability Office (GAO) has released a study, Retirement Security: Annuities with Guaranteed Lifetime Withdrawals Have Both Benefits and Risks, but Regulation Varies Across States. To protect against outliving one's assets, many people purchase annuities. Two of these products are the Variable Annuity - Guaranteed Lifetime Withdrawal Benefit (VA/GLWB) and the Contingent Deferred Annuity (CDA). The VA/GLWB is held in a separate account of the insurer, while the CDA typically is held in an investment account held by the purchaser. The GAO report highlights the features of VA/GLWBs and CDAs, as well as their differences, such as how they are regulated on a state and/or federal level, and risks and benefits. The GAO report is posted on its website, as is a related podcast.
