Understanding Annuity Portfolio Rates

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What Are Annuity Portfolio Rates?

Annuity portfolio rates are interest rates that an insurance company applies to the cash value of an annuity contract. These rates determine how much the cash value of the annuity will grow over time before payouts begin.

Understanding Annuity Portfolio Rates

Annuities are financial products that offer a steady income stream, typically for retirement. The annuity portfolio rate is crucial because it affects the growth of your investment.

Examples of How Annuity Portfolio Rates Work

  • Fixed Annuities: If you invest $10,000 in a fixed annuity with a 3% portfolio rate, your investment grows annually by $300.
  • Variable Annuities: The portfolio rate might vary based on the performance of the underlying assets.

Types of Annuities and Their Rates

  1. Fixed Annuities: Offer a guaranteed rate.
  2. Variable Annuities: Rates depend on market performance.
  3. Indexed Annuities: Rates are tied to a market index but have minimum guarantees.

The Impact of Portfolio Rates on Annuities

Higher portfolio rates mean more growth for your annuity, leading to larger payouts during retirement. However, rates can vary significantly between companies and products.


Annuity portfolio rates are a key factor in the growth of your retirement savings. Understanding the different types of annuities and their rates helps make an informed decision. You can secure a steady income for your retirement years with the right annuity. Contact us today for a free quote.

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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

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