Guaranteed Minimum Accumulation Benefit (GMAB)

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Definition of 'Guaranteed Minimum Accumulation Benefit (GMAB)'

The Guaranteed Minimum Accumulation Benefit (GMAB) is a type of retirement plan that guarantees a minimum amount of money will be accumulated over time. This is important for retirees who want to ensure that they have enough money to live on in retirement.

The GMAB is calculated based on a number of factors, including the retiree's age, salary, and years of service. The plan also takes into account inflation, so that the retiree's money will be worth the same amount in the future as it is today.

The GMAB is a safe and secure way to save for retirement. It is guaranteed by the government, so retirees can be confident that they will receive the money they have earned.

There are a few drawbacks to the GMAB. One drawback is that the interest rate is fixed, so the retiree's money will not grow as quickly as it would in a plan with a variable interest rate. Another drawback is that the GMAB is only available to employees of certain companies.

Overall, the GMAB is a good option for retirees who want a safe and secure way to save for retirement. It is important to weigh the pros and cons of the GMAB before making a decision about whether or not to participate in the plan.

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