Are you one of the people who don’t think you can get any good annuity rates right now? The AARP recently sent out some advertising for an immediate annuity rate of 6.5%. While that is not a bad rate, we were able to find better. Many people contacted us looking to see if the AARP’s deal was a good one. The 6.5% immediate annuity is through companies like New York Life Insurance and is based on a male aged 72. Annuity FYI was able to find an interest rate for the same male for 6.76%. It’s important to note that these annuity rates are payout rates, rather than straight interest rates. Payout rates include both interest rates and a return of your principal. This percentage shows how much of your purchase price is paid out each year.
Using a $100,000 example for this 72 year old man, we compared the payout rates that we found with those from the AARP. Our annual payout rate of 6.76% gives you monthly payments of $563 and annual income of $6,763. In contrast, the AARP’s 6.5% payout rates gives you $543 per month and $6,516. That’s a couple hundred dollars every year that you can save or spend somewhere without giving anything else. If you are looking for competitive annuity rates, Annuity FYI offers free quotes and annuity advice through trusted advisors. The income shown is before any taxes that will be due upon receiving payments. Before taking anyone’s word on the best annuity rates out there, do a little comparison shopping for your immediate annuities.
Written by Rachel Summit