The third quarter of 2023 saw record growth in annuity sales: $89.4 billion! That’s an 11% jump over the same quarter last year. Here’s one reason why: recent interest rate hikes. When interest rates rise, that often means better returns on annuities, especially for fixed and fixed index annuities. Peter with Richon Planning explains the correlation to Erin Kennedy, while outlining why annuities could make sense as part of your larger financial plan.
Annuities function as a private pension. They can provide guaranteed income for the rest of your life. Creating a private pension has become increasingly important because the percentage of workers in the private sector who have a pension is now 4%, down from 60% in the early 80%s.
