Are Fixed Annuities Good for Seniors?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Fixed Annuities for Seniors

Fixed annuities can be suitable for seniors, especially those seeking stable and predictable returns. They are designed to provide a consistent income, ideal for retirement planning. A senior’s suitability for fixed annuities depends on their financial goals and needs.

MYGAs vs. Fixed Indexed Annuities

  1. MYGAs (Multi-Year Guaranteed Annuities):
    • Best for seniors seeking a fixed interest rate.
    • Provide guaranteed returns over a specific period.
    • Similar to CDs, but typically offer higher interest rates.
  2. Fixed Indexed Annuities with Guaranteed Lifetime Income Rider:
    • Ideal for seniors desiring retirement income.
    • Offers potential for higher returns linked to a market index.
    • Includes a guaranteed lifetime income rider, ensuring a steady income stream.
Are Fixed Indexed Annuities A Good Idea For Seniors

Combining Fixed Interest Rates and Fixed Income

Fixed-indexed annuities offer a blend of both worlds:

  • Declared Fixed Interest Rate: Most products declare a fixed interest rate each year based on the current interest rate environment.
  • Stable Income: Provides a steady income stream, like traditional fixed annuities.
  • Flexibility: Offers the potential for higher returns while providing a guaranteed income.

Comparison of Annuity Types for Seniors

FeatureMYGAFixed Indexed Annuity
Interest TypeFixedFixed + Variable
ReturnsGuaranteed Fixed ReturnsVariable (Market-Linked)
Income StreamFixed TermLifetime Guarantee
Suitability for SeniorsHigh Certainty, Lower RiskBalanced Risk with Growth Potential

Conclusion

For seniors, choosing between MYGAs and fixed-indexed annuities depends on their preference for either a fixed interest rate or a combination of fixed income with the potential for growth. Both options offer benefits tailored to retirement needs, providing financial stability and peace of mind. Contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us
First
Last

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top