Participation Rates While indexed annuities are linked to the performance of a specific index, the annuitant won't necessarily reap the full benefit of any rise in that index. One reason is...
Find out why higher interest rates benefit some annuities more than others.
In 2023, interest in annuities of all kinds spiked because interest rates rose in 2022, which meant that insurance companies could offer greater benefits on their contracts. All annuities...
Annuities are distinct from other financial products in several key ways. A fixed annuity... An index annuity, sometimes called a “fixed index” annuity or “indexed” annuity, offers...
“When the Federal Reserve lowers interest rates, the effective rates on fixed annuities will also decrease,” said Janet Fox, president of ACH Investment Group in Raleigh, N.C., and an LPL financial advisor. “As a matter of fact, we have seen some fixed annu ...
Also known as equity indexed annuities, Nationwide’s fixed indexed annuities (FIA) offer growth potential, capital preservation and lifetime income.
Single-life annuity, Income, Joint-life annuity (50%), Income ; Scottish Widows, £7,514, Scottish Widows, £7,094 ; Canada Life, £7,410, Canada Life, £7,077 ; Standard Life, £7,213, Standard Life, £6,805 ; Legal & General, £7,059, Just, £6,737 ; Just, £6,974, Aviva, £6,658 ; Aviva, £6,927, Legal & General, £6,645
What can a FIA do for you? ; Protection from loss due to market downturns ; Lifetime income option ; Tax deferral on growth
Advantages, Disadvantages ; Potential for growth, Growth isn’t guaranteed ; Downside risk protections, Fees, caps, spreads, and other costs eat into your returns ; Taxes are deferred until withdrawal, when you will likely be in a lower tax bracket, You may have to pay a surrender penalty (plus applicable taxes) if you withdraw your funds before age 59 ½ ; Principal protection,
Indexed annuities promise higher interest than fixed annuities and less risk than variable ones. But be sure you know how your returns will be calculated.