During the first quarter of this year annuity rates increased by 6%, according to the Annuity News Journal. Henry Steelman’s article, “Annuity Rates Jump 6% in 1st Quarter,” says that this significant increase is just another reason that investors should look into annuities. It is a great time right now to look into investing in annuities for those purchasing retirement plans and those looking for a way to finance their retirement. Since annuity rates are high right now, it is a great time to transfer 401k annuities and other savings plans to traditional annuities.
The aging populations in America and Europe are likely to cause annuity rates to decrease again. The article points out that it is strictly a case of supply and demand. As people get older they are more likely to look to annuity products for a lifetime stream of income. The more people searching for annuities, the less banks are willing to pay out in annuity rates. MGM Advantage specializes in retirement plans and has been offering annuities throughout the recession. Their director forecasts a decline in annuity rates and suggests looking into alternate retirement options if you don’t plan on taking advantage of increased annuity rates now. Equity linked CDs and certain mutual funds can be good for investors as well. Speak with an expert to find out if annuities are the right investment for your future.
