From Dow Jones & Company:

Long-term interest rates are plunging right now, making stock and bond markets happy. However, income annuity payout rates are starting to come down as a result. This is bad news for those nearing retirement looking to maximize their savings. Only 3% of annuity sales come from lifetime-income annuities, despite economists questioning why more people don’t buy them. These annuities are insurance products that guarantee a lifetime income but are tied to long-term interest rates. Currently, annuity rates are staying the same or even increasing, despite the fall in interest rates. However, with the recent market changes, rates are expected to decrease in the coming weeks and months.



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