annuities

Kiplinger reports that fixed annuity payout rates have climbed above 6%, levels not seen in years, prompting financial commentators to ask whether retirees and near-retirees should lock in guaranteed income now. The article weighs the appeal of high guaranteed rates against inflation, interest rate uncertainty and the risk of committing funds at a potential peak.

A financial comparison asks which option delivers more lifetime income for a 66-year-old retiree with $540,000 to invest: a fixed annuity or a dividend-paying stock portfolio. The piece weighs guaranteed annuity payments against dividend income and market growth, a trade-off many near-retirees face when deciding how to turn savings into reliable retirement income.