To make a good, sound decision about your financial future, it’s important to know the current rates of annuities. Annuities are designed as a long-term retirement strategy, with the ability to give individuals (and their beneficiaries) a regular income after they leave the workplace.
But different companies offer a wide range of rates for a number of different types of annuities. This guide will help give you a brief rundown on current annuity rates and shed some light on the current fixed, immediate, and charitable annuity rates.
As with any financial decision, it’s important to work with an expert independent insurance agent who can help answer any questions you may have about annuity rates and clarify every single detail of your policy options.
They'll help by searching multiple companies for the best rates and making sure you get the right solution for your retirement needs. Pretty great, huh? But first, here's a bit of background to get your search going in the right direction.
Brief Rundown on Current Annuity Rates
There is a common misconception that a better annuity interest rate equals better income from an annuity. Be aware that companies offer different terms and policies that change how an annuity ultimately costs and pays out.
The following are some of the main factors that insurers use to determine the cost of premiums and how much you can expect to receive:
- Current interest rates: If interest rates are high when you purchase your annuity, you can expect your payments to be higher than if interest rates were low. The reason for this is because the insurer predicts that it can earn more by investing your money.
- The amount deposited: The more money you put into your annuity through monthly premiums or a lump sum, the more you can expect to get back as income.
- Age: The older you are when you purchase your annuity, the higher your payments will be. The reason for this is because an older individual isn't expected to live as long as those who fund their annuity at a young age.
- Gender: Because women live longer than men, they receive less money than men of the same age.
- Options: The more options you add to your policy, like a joint policy and a death benefit, the lower your annuity payouts. This is because these extra policy features increase the costs to the insurer.
As you can imagine, there’s a lot to consider when choosing an annuity that works for you. If you’re looking for which annuities match your unique situation and retirement expectations, be sure to consult with an independent insurance agent.
What are the Current Fixed Annuity Rates?
Fixed annuities are insurance products that protect against loss of savings and generally offer fixed rates of return. In most cases, their interest rates are based on the current interest rate environment.
Here's a look at a few of the top companies and their current fixed annuity rates for different term-length options:
|Atlantic Coast Life Insurance Company||4.30%|
|Sentinel Security Life||4.20%|
|Atlantic Coast Life Insurance C||4.19%|
|Sentinel Security Life||4.10%|
|Fidelity & Guaranty Life||4.00%|
|Phoenix (Nassau Re)||3.95%|
|Liberty Bankers Life||3.80%|
|Atlantic Coast Life||4.00%|
|Sentinel Security Life||4.00%|
|Phoenix (Nassau Re)||3.85%|
|Liberty Bankers Life||3.10%|
What are the Current Immediate Annuity Rates?
Immediate annuities are a type of financial product that pays out to an investor at the start of the policy when the investor submits a lump-sum payment.
Here's a look at a few of the top companies and their current immediate annuity rates:
|Jackson National Life||4.34%|
|Penn Mutual Life||4.19%|
|Lincoln National Life||4.10%|
|New York Life||4.03%|
What are the Current Charitable Gift Annuity Rates?
Charitable gift annuities are a great way to provide income while benefiting a charity of your choice. Considered as a gift vehicle, a charitable gift annuity involves a contract between an individual donor and a charity. This contrasts with most annuities which are normally made between individuals and insurance companies.
In exchange for transferring a cash or property donation to the charity, the individual receives a lifetime stream of annual income from the charity and some nice tax deductions too.
The following charitable gift annuity rates are based on data from the American Council on Gift Annuities for a single donor purchased this year:
|Age of Donor||Rate|
|5 - 7||2.2%|
|8 - 13||2.3%|
|18 - 21||2.5%|
|22 - 25||2.6%|
|26 - 28||2.7%|
|29 - 31||2.8%|
|32 - 33||2.9%|
|34 - 35||3.0%|
|36 - 37||3.1%|
|38 - 39||3.2%|
|40 - 42||3.3%|
|43 - 44||3.4%|
|45 - 47||3.5%|
|48 - 49||3.6%|
|50 - 51||3.7%|
|52 - 53||3.8%|
|55 - 56||4.0%|
|59 - 60||4.3%|
|61 - 62||4.4%|
|65 - 66||4.7%|
To make sense of how these annuity interest rates affect your financial future, you'll want to get in touch with an independent insurance agent.
With years of insurance and fiduciary experience, an agent can help answer your questions and pair you with the best policy options to maximize your annuities and other investments.
What's So Great About an Independent Insurance Agent?
Insurance and annuities are complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
They'll make sure you get the right coverage for your own unique needs and break down all the jargon so that you understand exactly what you're getting.
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