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Index

Milliman Hedge Cost Index December 2024

7 January 2025

As of the end of December 2024, the expected hedge cost is estimated to be 110 basis points (bps) for a hypothetical guaranteed lifetime withdrawal benefit (GLWB) on variable annuities (VA) and 106 bps for registered index-linked annuities (RILA), down 11 basis points and down 13 basis points, respectively, from the previous month, driven by an increase in long-term interest rates. The Index Methodology provides additional details about the assumptions and methodologies underlying the Milliman Hedge Cost Index™ (MHCI).


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