Annuity Rate Quotes

Another hidden danger with ‘switch and get rich’ is that older pensions might have guaranteed bonuses or annuity rate guarantees hidden away in the small print. Many of these will date from the 1980s and 1990s when interest rates were higher and stock-market performance was much better than it is today and will be for at least the next five to ten years. Most savers probably don’t know about these guarantees and may be lured into switching from older, better funds and thus losing valuable benefits.

People who are retiring now are finding that annuity rates have been squashed by QE, and that they will get a smaller pension than they expected. Retirees who get locked into a weak annuity will find that the Bank’s money printing leaves them out of pocket for the rest of their lives.134

David Snavely’s Advice for Choosing the Right FIA Not all Fixed-Index Annuities are the same. David Snavely recommends paying attention to: The participation rate & cap rate – These determine how much of the market's growth you can earn. The surrender period – The length of time before you can access funds without penalties. Fees & charges – Understanding any costs associated with the annuity. The insurance company’s reputation – Choosing a stable provider ensures your payments are secure.