Learn about Vanguard’s variable and income annuity fees and our low-cost approach.
Other highlights from this webcast
Akweli Parker: I want to take this question from Joe who asks, “Does Vanguard offer an annuity that is low cost?” Can you talk about what we offer?
Danielle Corey: Absolutely. So, again, I’ll try to delineate by type. So starting with the variable annuity, Vanguard does offer a variable annuity that we’re very proud of from a fee perspective. So the average expense ratio of the Vanguard Variable Annuity is going to be 52 basis points versus an industry average of 2.26%, so that’s about an average of 70% savings there, which we think is important to making the value for our investors.
Akweli Parker: It might not sound like a lot immediately, but over time that makes a big difference, right?
Danielle Corey: Absolutely. And then on the income side, we also offer very competitively priced income annuity options—and I think the overall point though is that if you decide that you want to talk to someone at Vanguard about potentially purchasing an annuity, that our experts are not commissioned and their performance isn’t based on making a sale. It’s based on how well they’re educating our clients and helping them get to the right decision.