Lifetime Income - Annuity Distributions - RightCapital Help Center

When adding an annuity as an asset in the Profile > Net Worth section of a client plan (or when proposing an annuity purchase in the Retirement > Analysis section) you can use the Distributions drop-down box to illustrate how money will be withdrawn from the annuity. Distribution options include regular withdrawals, annuitization, and lifetime income:

The last of these options is Lifetime Income - this option is for any annuity that has a guaranteed lifetime income rider or associated benefit. Selecting this option will automatically populate new fields within your annuity entry, allowing you to model the parameters of that lifetime income guarantee:

Entry	Description
Benefit Base	The value used to calculate the client's guaranteed lifetime income amount will be a percentage of the benefit base. The benefit base will generally increase by a fixed rollup rate or a step up to the client's account value. In projections, RightCapital will automatically step up the benefit base each year, if applicable, in addition to the rollup specified.
Rollup rate	The rate at the benefit base is guaranteed to increase yearly.
Rollup rate compounding	If checked, the benefit base will increase by a compounding rollup rate; if unchecked, it will increase by a simple interest rate.
Rollup stop year	The year the benefit base stops increasing automatically by the rollup rate. RightCapital will also stop the rollup rate in the Income starts year, if earlier.
Income starts	The year that guaranteed lifetime income withdrawals from the annuity begins.
Income type: Percentage	This reflects that the income amount will be calculated as a portion of the accumulated benefit base.
Income type: Amount	This reflects that the income amount will be the specific amount entered. The benefit base and associated parameters are ignored if the amount is applied.
Annual Increase	This field indicates whether, and if so, by how much, the income amount increases each year after lifetime income begins. This can be used to reflect a COLA option or any guaranteed increase.
AV based fee	Illustrate any annuity fee calculated based on the client's account value (AV). Fees will reduce returns generated by the annuity.
Benefit based fee	Illustrate any annuity fee calculated based on the client's benefit base. Fees will reduce returns generated by the annuity.

After filling out the above fields and clicking Save, the annuity income can be found in the Retirement > Cash Flows > Summary page, within the Income Inflows column. You can also track the annuity value within the Accounts > Ending Balance by Accounts page: