What are the risks of a variable annuity with a guaranteed income rider?

Variable annuities with guaranteed lifetime withdrawal benefit riders are heavily marketed as 'market upside with downside protection,' but the details matter. The guarantee usually applies to a separate 'benefit base' used only to calculate income, not the actual cash value you could walk away with – so the headline growth can be illusory. Total fees frequently run 2.5%–3.5% a year once you stack mortality charges, fund expenses, and the rider, which quietly erodes returns. Surrender charges can lock your money in for years, and the contracts are genuinely complex. None of this means these products are never appropriate, but the costs are high and the marketing oversells the benefit. Before buying, ask for the all-in annual fee in writing and read exactly what the guarantee does and does not cover.