8 notable trends in the VA business
3. Jois de fee
Stop us if you've heard this one before: Higher fees are coming. Indeed, if there is one thing clients can count on, it’s that fees on annuity contracts will climb across the board. Wratcheting to fees accounted for 37 out of 101 total VA contract changes filed with the SEC during the fourth quarter. Not everyone is hopping on the fee-hike bandwagon, however. AIG’s VALIC cut back fees on a couple of products, including a 20 bps reduction to 1.10% on its IncomeLOCK 8 Lifetime GMWB, according to Morningstar. The withdrawal percentage at age 65, though, fell to 4.75% from 5%.
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