Guaranteed Minimum Income Benefit (GMIB)

A Guaranteed Minimum Income Benefit (GMIB) is a feature often found in certain retirement annuity contracts that ensures a minimum level of income over a specified period, regardless of market conditions. If the investment underperforms, the GMIB guarantees that the annuity holder will receive a predetermined minimum income, providing financial security. This benefit is particularly appealing to retirees seeking predictable income, as it offers a safety net against market fluctuations. Essentially, GMIB blends investment growth potential with a safeguard against the risk of outliving one's savings.