MYGAs Are Heating Up During Annuity Awareness Month
Whether you are planning for retirement or wanting to protect your hard-earned retirement dollars, annuities have become a safe retirement vehicle for consumers during the volatile economic times we are experiencing right now. Inflation continues to rise in 2022 and the stock market continues to bounce down more than up the last couple of months.
Are you looking for safer alternatives to bank savings accounts and CDs that have better accumulation rates? Are you tired of losing money in the market waiting for the upswing despite talks of a bear market coming soon?
During June’s Annuity Awareness Month, Annuity Alliance wants to share the reasons why annuities continue to become a popular selection as part of a retirement planning strategy. More consumers are choosing an annuity product that fits their CURRENT needs but also takes into consideration their FUTURE needs.
With inflation rising, multi-year guaranteed annuities (MYGAs) are starting to become a common trend for most consumers. According to WINK, MYGA sales in the first quarter 2022 were $14.5 billion; sales were up 30.1% when compared to the previous quarter, and up more than 9.86% when compared to the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
Consumers are taking advantage of fixed rates as high as 3.8% on some products with a lot of MYGA products being adjusted on a weekly basis by carriers. Annuity Alliance has noticed most carriers almost over 3% right now, which is a much higher percentage than bonds, CDs, and bank savings accounts.
MYGAs also have shorter and longer terms available ranging from a minimum of three years with products having five, seven, and even 10 year terms based on the carrier. Once you purchase a MYGA, the rate is locked in and guaranteed for that period.
Annuity Alliance also doesn’t want you to forget about the popularity of fixed annuities and fixed indexed annuities (FIA) as these products could provide higher rates over the long term since their rates are tied to specific indices.
Our team also can connect you with a financial professional to review the multiple type of annuities available to help you in deciding on what product best suits your retirement planning needs. If you have questions, please contact Annuity Alliance.