What is the surrender charge for early withdrawal from a variable annuity?

The surrender charge for early withdrawal from a variable annuity varies depending on the specific policy and terms of the contract. Typically, surrender charges are assessed on a sliding scale that decreases over time. In general, the longer you hold the annuity, the lower the surrender charge will be if you decide to withdraw funds before the specified surrender period has ended. However, it is important to note that surrender charges can be significant, potentially reaching as high as 10% of the withdrawal amount. It is advisable to carefully review the terms and conditions of your specific annuity contract before making any early withdrawals to fully understand the potential surrender charges that may apply.