A Guaranteed Minimum Income Benefit (GMIB) is an annuity rider that guarantees a minimum level of lifetime income based on a benefit base rather than the contract's then-current account value. The Base may grow by a roll-up rate or market step-ups, but it is only used to calculate annuitization payments under specified terms. Accessing the benefit generally requires annuitization; cash surrender is still limited to actual account value. Fees apply, and withdrawals can reduce the base.GMIBs suit clients prioritizing future income certainty regardless of market performance, with the trade-off of reduced flexibility.

Pre-retirees use GMIBs to secure future income. Advisors track the benefit base, caution that it is not cash, and plan for annuitization under rider terms. If liquidity needs change, they compare GMIBto GMWB designs that preserve access without annuitization.