Annuity payouts are the highest they’ve been in years. Thanks, inflation.
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- Cannex reported that six months ago a 65‑year‑old retiree with $100,000 could lock in a $593 monthly lifetime income, a 7.1% annual payout rate.
- Immediateannuities.com says a 65‑year‑old retiree today would receive about $632 monthly, a 7.6% annual payout rate.
- Interest rates driven by inflation have lifted annuity payout rates to their highest levels in years.
Why it matters: Retirees who purchase annuities today secure guaranteed monthly incomes up to $632, a 7.6% annual rate, while insurers must honor larger payouts, potentially squeezing profit margins as high rates persist.
