The one that pay the most with the least risk. But when it comes to retirement money, the older you are or closer to your retirement date, the more adverse you are to risk. All annuities should be purchased with the ultimate goal of generating income, ideally income you can’t outlive. Currently fixed interest rates for ten year annuities are 3.25%. That could change. Indexed annuities may pay more, but their performance is tied to market indices. Speaking of the market, variable annuities could pay the best, but could loss the most, may be even your entire deposit.
Product suitability for each potential retiree is established by their risk tolerance, their liquidity needs, their length of time to accumulate and the length of time for distributions. Keep in mind that ultimately annuities should generate income, by withdrawals and/or annuitization. The older the annuitant is mortality credits become a player in the increased income amounts of life time annuities payout you can’t outlive.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
That is a particularly interesting question as few people ever ask it. The best annuity in retirement is the one that will provide the basic amount of money that you will need each month for the rest of your life. That annuity cannot provide for every eventuality but will on average deliver a significantly higher return on your investment and will give you the most important thing, peace of mind. Usually this would be a single premium immediate annuity.
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Product suitability for each potential retiree is established by their risk tolerance, their liquidity needs, their length of time to accumulate and the length of time for distributions. Keep in mind that ultimately annuities should generate income, by withdrawals and/or annuitization. The older the annuitant is mortality credits become a player in the increased income amounts of life time annuities payout you can’t outlive.