Annuities have always been known for being sold but not being bought. The annuity industry that has a net worth of around $2.8 trillion has grown for years and years, all thanks to the commission based products sold primarily through various insurance agents and brokers. This process takes place sometimes with minimum to absolutely no attention to the client’s best interest. It has been reported that quite a lot of annuity brokers and agents have withdrawn from selling traditional annuities as they are prepping up for the new regulations which impose a fiduciary standard on any investment purchases for a retirement account. There has been a significant fall in annuity rates in 2017 where sales of variable annuity in 2017 were 10% which is the lowest since 1998. Analysts predict a fall in the current annuity rates.
Fixed income annuities stand out better than most other income producing options. Competitive contracts come with the best-fixed annuity rates and pay between 5% and 6% which means that a $200,000 investment would bring about $12,000 hike in annual income which is more than double of $4,600 one could get from a 10-year treasury. However, annuities are not simple. Some defer income and some would pay right away. It is important that you have a complete knowledge of the average annuity rates, the future value of the annuity, the kind of annuity you want and on that basis choose whether the best immediate annuity plans, or fixed-income, deferred income, variable etc.
Some of the best annuities of 2017 for the type immediate “life only” annuities were offered by American National which paid a monthly income of around $966.03 when the percentage paid on investment was 5.80% which lead to a total income of $289,809 by the age of 85. The company Guardian also stood out to be one of the best as it produced a monthly income of around $964.20 when the percentage paid on investment was 5.79% and lead to a total income of $289,260 by the age of 85.