2015 Barron’s Top 50 Annuities
Published: June 25, 2015
Categories: Deferred Income, Immediate Annuities, In the News, Indexed Annuities
Following are selections from a Barron’s article titled, “The Best Annuities,” by Karen Hube. AnnuityAdvantage.com is referenced as a Source for the article.
Investors are realizing what academics have long preached: Fixed income annuities outshine all retirement income options.
The appetite for guaranteed retirement income is reshaping the industry, and drawing investors away from the enormously popular variable annuity market. Sales of variable annuities usually rise with the stock market, but they have declined steadily for three consecutive years and are 24% below their 2007 highs. Why this new hunger for fixed annuities? As investors get real about how to turn their nest eggs into lifelong income, they’re discovering what academics and analysts have been preaching for years: Fixed income annuities outshine all other income producing options.
MAKE NO MISTAKE: Annuities aren’t a simple solution. There are hundreds of variations, some that defer income and others that pay right away. Underlying investments may be variable, meaning they swing with the markets, or fixed, meaning investors get a fixed return. And insurers layer on benefits and perks and options for guaranteed income, death benefits, liquidity, and more each with their own terms and conditions and expenses.
To help make sense of the vast menu of annuities, Barron’s rounded up the most competitive contracts in their categories, based on basic assumptions such as age and size of investment. The accompanying charts highlight the 50 best annuity contracts in the industry as of the first week of June; quotes from insurers can change on a daily basis.
As with all annuities, wise choices and careful placement can increase assets and generate more income, and go a long way toward a more carefree retirement.
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