Will Annuity Rates Improve In The Future?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaNo one knows the answer to that. But interest rates generally have cycles. Presently the government is artificially suppressing interest rates, but it seems reasonable that rates must rise eventually. Many financial planners are locking down interest rate periods of five years or less which may be an indication of their belief that interest rates will rise within the decade.Answered on June 2, 2013+01+1 this answer
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37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThere are two rates to consider. The rate of interest earned on accumulations changes all the time. Most contracts have a guaranteed interest rate but companies actually pay a “new money” rate. As the interest environment changes these rates change to remain competitive. The provisions for payout are in the contract and do not change, however, future contracts might have significantly lower rates due to the ever increasing longevity of the population.Answered on August 13, 2014flag this answer
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