How Interest Rates Affect Annuities

How Interest Rates Affect Annuities

By Jason Watson
|
July 18, 2024

Introduction

Annuities are often touted as stable income sources during retirement, but their performance isn't immune to the ebbs and flows of the market. One significant factor that can impact your annuity's growth and payout is the movement of interest rates. Understanding this relationship is crucial for anyone considering annuities or currently holding them in their portfolio.

This article delves into the intricate relationship between interest rates and annuities. We'll explore the different types of annuities and how they are uniquely affected by interest rate fluctuations. Whether you're planning for retirement, seeking a steady income stream, or simply curious about how economic factors influence your investments, read on to gain valuable insights into the world of annuities and interest rates.

How Interest Rates Impact Annuity Payouts

Types of Annuities and Their Sensitivity to Interest Rates

Strategies for Navigating Interest Rate Changes with Annuities