With interest rates as low as they have been, buying an annuity now that pays a guaranteed 8% compounded rate of return sounds pretty good…on the surface. If you are looking for a guaranteed, static annual income –– that will never grow over time –– one of these plans may be right for you. But, maybe not.
Most baby boomers we talk to, however, are looking for a retirement income solution that grows the income stream over the course of a lifetime to help offset the cost of inflation. That’s why at Annuity Watch USA we focus almost exclusively on Income AND Growth guaranteed retirement solutions…where the income component of your annuity actually increases as you age.
When you look deeper into the “8% Compounded Rate of return” solution you’ll discover:
While an 8% compounded rate of return income annuity may make sense for some people, it certainly does not make sense for everyone. It is critical that you look at all your options, side-by-side, and get the facts before you make a decision.
Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer.