Plunging annuity rates: A strategy for new retirees
April 10, 2020 by Brett Arends
Lucky old grandma. When she retired all those years ago, her income security needs were pretty simple. She could convert a large part of her lump-sum savings into a guaranteed steady income stream for life by purchasing a single premium immediate annuity.
Today? You’re right out of luck.
Such annuities continue to be offered by insurance companies, but the monthly payouts they generate has collapsed to the lowest levels on record, according to ImmediateAnnuities.com.
In 2000, a 65-year old woman with $100,000 in savings could buy an annuity guaranteeing her income of $744 a month.