Podcast #9: How do Interest Rates affect different Annuity Types?


In this episode, The Annuity Man discusses:

  • How interest rates affect each annuity type
  • How life expectancy and interest rates work with each income annuity type
  • What is the interest rate benchmark that the annuity industry follows
  • What specific strategies to use instead of trying to “time” interest rates

Key Takeaways:

  • With lifetime income guaranteed strategies, life expectancy is the primary pricing mechanism
  • Interest rate play a secondary pricing role with lifetime income guaranteed strategies
  • The US 10 Year Treasury Note is the “bogey” for the annuity industry
  • No one on the planet can predict interest rate movement

Trying to time interest rates with annuities is like trying to nail jello to a wall.

The Annuity Man