Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Immediate Annuity Prices Depend on Timing


By

Many Boston Globe readers have an increased interest in purchasing an immediate annuity, according to Humberto Cruz’s “When you buy can affect how much you will pay for an immediate annuity.”  Immediate annuities turn a lump sum payment into a stream of income you’ll receive over your lifetime.  They are attractive right now with a still volatile stock market.

As interest rates remain low, the price of an immediate annuity is higher than it would be at a time of higher annuity rates.  You have to spend more of your money to get the income needed for your monthly payouts.  Annuity prices are also based on your age and gender, since the longer you are expected to live you will have to pay more.

Immediate annuities tend to be relatively low cost and provide stable income for retirement.  An argument can be made for purchasing now and for waiting until interest rates increase.  By waiting to purchase an immediate annuity, you get more for your money even if interest rates do not increase.  That is simply because you are older and your life expectancy has decreased.  By purchasing now, you ensure that you at least get this interest rate in case they go down.  Many advisors recommend “laddering” purchases, or buying smaller immediate annuities every few years instead of purchasing a large one when rates are lower.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of Somerset Wealth Strategies, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. Somerset Wealth Strategies, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).