Fixed Annuities on a Tear in 2022
November 15, 2022 by Brian Anderson
Fixed annuities are having a moment, and they can thank rising interest rates for it.
In a LinkedIn post today, Sheryl Moore, founder, creator and CEO of Wink, Inc., and Moore Market Intelligence, had a compelling chart culled from her WinkIntel’s AnnuitySpecs tool that offered a simple explanation. From her post:
Here’s why annuity sales are on the rise.
AVERAGE FIXED ANNUITY RATES
2011: 2.77%
2012: 1.98%
2013: 2.49%
2014: 2.71%
2015: 2.68%
2016: 2.01%
2017: 2.06%
2018: 2.95%
2019: 2.72%
2020: 1.81%
2021: 1.71%
Today: 4.25%
Amid this year’s stock market turmoil, consumers are turning to annuities as higher interest rates raise payouts for buyers.
“Fixed annuity sales are spiking because CD rates are still floating just above 1.00% and I have 5-year fixed annuities crediting 6.00%. Not to mention that the annuity provides tax deferral and a guaranteed lifetime income,” Moore said in an interview with 401(k) Specialist.
Click HERE to read the full story via 401(k) Specialist
