Best annuities for retirement

An impressive increase in the percentage of annuity sales is reflective of the population’s growing interest in using annuities to reach their income and retirement goals. Data released by Beacon Research and Morningstar, for the first-quarter of 2014, showed that net annuity sales for the period totaled $56.1 billion. That is a rise of 13 percent, from the first quarter of 2013.

Division of All Annuities Sales

Of the $56.1 billion in first-quarter annuity sales, $33.5 billion was in variable annuity sales and $22.6 billion was for the purchase of various types of fixed annuities. Variable annuities are geared toward investors willing to accept a substantial amount of market risk and are usually not appropriate for investors seeking safety and a steady stream of income. In year-over-year first quarter comparisons, variable annuity sales declined slightly. Immediate annuity sales surged 50 percent and Index annuity sales shot up by 44 percent.

Annuities are More Popular than Ever

As the Baby Boomer generation searches for the best solution for their retirement income needs, it is easy to understand why so many of them are choosing immediate annuities. Current annuity rates pay substantially more than low-paying CDs and do not expose your “safe” money to the risks of the stock market. When you stop working and retire, you don’t stop living and your bills still need to be paid every month. Having a guaranteed stream of income in addition to your Social Security check can provide you with the peace of mind you want. Take a look at some of the other features of immediate annuities.
  • You know the exact amount of monthly income you will receive because it is specified in the contract that you sign.
  • Annuities are highly regulated by the government and every annuity is backed by the financial strength of the insurance company that sells the annuity.
  • You can guarantee that you will never outlive your income by adding a lifetime income rider. Even if you live to 100, you will continue to receive your monthly check.

Other Types of Fixed Annuities

If you are not yet ready to retire, or you have no immediate need for income now, you may want to consider the purchase of a deferred income annuity. Also known as a longevity annuity, this is another very popular option for those planning for their income needs in the next five or ten years (or longer). The money you pay to buy a deferred annuity is invested and, during the accumulation period, it is invested and earns a rate of return. All other things being equal, a longevity annuity will almost always pay you a higher monthly income when you begin taking your monthly payout. Sales of longevity annuities totaled $620 million in the first quarter of 2014, up 57 percent over first-quarter sales in 2013.

Let Us Find You the Highest Immediate Annuity Rate

We know it can be difficult to decide which type of annuity is best for you. Our financial calculator can show you the different income scenarios based on current annuity rates and other important factors. So many retirees have already secured their financial future by purchasing an immediate annuity – and you can too! Let us show you how.

About John G. Ziesing

John G. Ziesing, born and raised in Florida, I feel a special commitment to helping Florida's seniors build their wealth and preserve their hard-earned assets. Since 1986, I have served hundreds of individuals and families, tailoring long term, personalized financial plans for them that carefully preserve their principal and maximize returns.
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