Annuity rates fell in 2009, according to annuityrates.org’s article “Falling pension annuity rates are hitting annuitants say MGM.” The UK website stresses concern over falling income for those receiving annuity payments. MGM Advantage is a company specializing in pensions who believes that 2009’s falling rates are hitting people hard financially. The income received from standard annuities in the UK fell by 2.16% in 2009, according to the Advantage Annuity Index. They show a 1.33% decrease for enhanced annuity income. Although a report shows that rates have increased at the beginning of 2010, the Advantage Annuity Index shows a small decline in the first quarter of 2010.
Of course these rate changes apply to variable annuities rather than fixed annuities. Fixed annuity rates that are set over a time period will not change and affect your income stream. Even though rates are lower than they were in the past, they actually are still at a good level and should not deter any investor from looking into annuities for a future stream of income. Annuities are still a dependable and secure way to guarantee a lifetime of income payments, especially in retirement. As long as there is a rate above your initial investment, you are making money that you didn’t have before. With all of the different annuity options available, the flexibility will allow almost anyone to find a custom fit annuity for their future.
