Inflation can throw a wrench into retirement plans. That’s because, over the long term, inflation erodes your income’s purchasing power. So even if you save and invest, your wealth may buy less and less with time. Commercial annuities often pay a fixed monthly income. This fixed amount is susceptible to inflation. But if annuities are…
Buying an Annuity During Times of Inflation
Annuity Market Will Cool in 2023 as Interest Costs Soar: Expert Forecast
A tumbling stock market and higher interest rates are forcing consumers to buy annuities. According to LIMRA, a trade group for the insurance industry, annuity sales in the third quarter of 2022 approached $80 billion, just beating the $79.4 billion record set in Q2. It’s an impressive 27 percent increase over last year. As in…
What Is a Variable Annuity
As previously discussed, when it’s time to buy an annuity, you have the choice between an immediate and deferred annuity. If you prefer an immediate annuity, you’ll make a lump-sum payment. Within a year of the contract, the insurance company will begin issuing you a monthly income—which can either be for a specified number of…
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