What Is a Roll-Up Rate in Annuities?

Have you been pitched an annuity with a guaranteed "7% roll-up rate" and thought you were earning 7% cash interest on your money, just like a bank CD? Before you lock in your retirement savings, you need to understand the difference between actual cash growth and "phantom" income values. In this completely unfiltered video, Shawn from The Annuity Expert breaks down exactly what a roll-up rate is and how it functions inside an annuity contract. He explains that a roll-up rate is simply a mathematical calculation used within a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider to determine your future lifetime income stream. By combining the roll-up value with a payout percentage based on your age, a roll-up rate allows you to take the guesswork out of retirement and know exactly what your future "personal pension" paycheck will be up to 20 years in advance. However, Shawn issues a critical warning regarding deceptive sales tactics. A roll-up rate is NOT tangible cash. You cannot cash it out in a lump sum, and in most cases, this inflated value does not pass down to your beneficiaries as a death benefit. Shawn explains why you should view a roll-up rate exactly like the internal calculations of a traditional corporate pension—it is a fictitious value used strictly to calculate your guaranteed future paychecks, not real interest you can put in your pocket today. 👉 Read our full guide defining benefit bases, roll-up rates, and income calculations here: https://www.annuityexpertadvice.com/annuity-basics/definitions/benefit-base/ 📞 Call our team for free, no-obligation advice to safely evaluate your lifetime income guarantees at: 770-755-1565 ⏱️ Video Chapters: 0:00 - Intro: What is a roll-up rate in an annuity? 0:08 - How roll-up rates calculate your Guaranteed Lifetime Withdrawal Benefit (GLWB) 0:33 - Taking the guesswork out of retirement (Building a personal pension) 1:07 - The Roll-Up Formula: Roll-up value + payout percentage = future income 2:09 - The Phantom Money Warning: Why a roll-up rate is NOT tangible cash 2:45 - The sales pitch trap: Confusing roll-up rates with fixed CD interest 3:07 - Can roll-up values pass down as a standard death benefit? 4:21 - Final Verdict: How to get objective help if you were sold a misleading contract