Are Annuities a Good Investment in 2022?

During the pandemic, annuities bottomed out for the most part. Since the beginning of 2022, annuities have begun to trend up. Buyers who are generally retirees or those near retirement age, may find their payouts better than they were in January of 2022.

This increase is expected to continue, if the Federal Reserve continues raising its benchmark interest rates. Some experts are predicting the increase to tame high inflation.

An annuity is a contract between the holder and the insurance company in which the holder makes a lump-sum payment, or series of payments; in return, the holder gets regular disbursements.

With this regular stream of income, annuities can be attractive to those retiring or looking to retire. Because annuities are largely based on two factors: life expectancy and interest rates; annuities are an attractive investment to those near or entering retirement.

If interest rates go up, annuities are expected to pay out more.

The average payouts from an immediate annuity increased by more than 11% for men and 13% for women since the beginning of 2022, according to CANNEX Financial Exchanges Limited. 

Insurance holders are beginning to see the difference. According to CANNEX, the average man was offered $616 a month at the end of April versus $553 a month at the start of the year. That is an average of $63 a month or $756 a year.

Consumers thinking of purchasing annuities should shop around and get different quotes from different companies.

Want to know more about the annuities that are offered? Call Advanced Insurance Concepts today and Jim Rooney will work with you to find the answer. Advanced Insurance Concepts works with a variety of insurance companies and all Medicare Advantage providers in Missouri and Kansas. He is licensed to sell Health, Life and Accident Insurance, so call Jim Rooney for all your insurance needs.