7 Reasons to Consider Annuities in 2022

June 23, 2022

Annuities have become a topic of hot conversation as people consider how to protect their investments and special interests. When fiscal uncertainty has become more commonplace, people are looking for more opportunities to protect their assets and retirement funds. If you are reconsidering your retirement strategy, you might wonder if annuities are a good investment. Likewise, annuities hold a place in investment and can serve as valuable tools.

Are Annuities a Good Investment in 2022?

Investment markets can be unpredictable, volatile, and highly dynamic. That often leaves many wondering about the right choices for their retirement plans.

Reasons for Annuities

There are a few key reasons why annuities are still a good investment, including:

  1. Predictable post-65 income — While you spend much of your younger adult life striving to build retirement funds, your priority should shift to preservation as you near retirement. Fixed annuities can help you preserve your accumulated funds.
  2. Saving equity earnings — Those who take aggressive approaches in equity markets choose annuities to maintain those earnings. You’ll protect the funds and earn some interest with annuities.
  3. Tax deferral benefits — Annuity accounts allow you to defer taxes on your funds until withdrawal, saving you significantly in tax expenses for the invested funds and the interest.
  4. Reduce your risk — When you’re looking for a way to ensure consistency in your available funds, annuities may be the answer. They aren’t investment products but instead are a kind of insurance. That means you eliminate much of the risk of loss, ensuring more excellent reliability and consistency over the long term.
  5. Privatizes your pension — Fewer businesses than ever provide retirement funds or pensions for staff. Don’t count on an employer’s pension fund. Instead, choose annuities as part of your retirement strategy. It gives you a private pension fund to rely on.
  6. Know your costs — One of the biggest challenges with many investment funds is finding information about prices, including transaction fees, withdrawal penalties, and more. Annuity funds eliminate those worries because they are like insurance plans, so any associated costs are in the declaration pages.
  7. Evolving with the times — If you’ve hesitated to consider an annuity because of past perceptions, you should know that annuities are different now than they used to be. Annuities have evolved with the times, providing you with more reliable earnings, more significant payouts, and other benefits.

Will Annuity Rates Rise in 2022?

You might wonder if annuity rates will rise in 2022, which will help you decide if it’s worth investing. The truth is that many annuity firms have already announced rate increases for their annuities in 2022. It means that annuity investments may recognize more significant gains in 2022.

Establishing the right retirement strategy takes careful planning and consideration. Understanding these basics can help you see why annuities are an ideal solution.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance organization, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.