Multi-Year-Guaranteed-Annuities Are Selling During Annuity Awareness Month

June is Annuity Awareness Month, which couldn’t be more appropriate considering the continued growth in popularity annuities have been enjoying these past several weeks. As inflation carries on its meteoric rise and the stock market continues to fluctuate dramatically, more consumers are deciding to protect their hard-earned retirement dollars by investing in guaranteed income annuities.

Annuity Associates has some ideas for you if you’re concerned about the instability of the stock market and wondering what you can do to protect your financial future. Keep reading for an in-depth look at why annuities are holding firm as a popular retirement strategy during these uncertain times.

What Are MYGAs?

As inflation continues to increase, consumers in the market for investments are flocking to a specific type of annuity: the multi-year guaranteed income annuity, or MYGA. Noted intelligence firm Wink states that MYGA sales were up 30.1% in the first quarter of 2022 compared to the previous quarter, totaling $14.5 billion.

Multi-year guaranteed income annuities is a type of fixed annuity with a fixed rate guaranteed for multiple years. Whereas other fixed annuities might see their rates change as often as annually, MYGAs owners can enjoy an added sense of security in knowing their rate will be locked in and can’t be lowered for years to come. This peace of mind goes a long way when creating an effective retirement income strategy. 

The Case for MYGAs as a Retirement Income Strategy

The fact that their rates are guaranteed for more than one year makes MYGAs a particularly attractive form of income for soon-to-be retirees, especially in light of the current volatility of the stock market. At Annuity Associates, we’ve noticed MYGA rates as high as 3.8%, with many companies offering rates of at least 3%. This is much higher than the fixed rate percentage offered by government-backed bonds and is also higher than the rate available from bank savings accounts.

The strongest case for MYGAs as a long-term financial strategy is that the period for which the fixed rate is set can vary according to your needs. The minimum period is typically three years, while longer terms can run up to five or even ten years at the same rate. Being able to count on a steady, assured level of income for a period of five to ten years brings an immense amount of relief to retirees who want to know their financial futures will be taken care of after they stop receiving a regular income from work.

Multi-year Guaranteed Income Annuities: The Bottom Line

Any time you’re ready to take steps toward securing your financial future, it’s a good idea to talk to a licensed professional who can inform you of your options and help you choose the investment strategy that’s right for you. If you’re interested in speaking to an expert about possible long-term financial strategies, including MYGAs and other fixed or fixed index annuities, reach out to Annuity Associates. We’ll put you in touch with a retirement income strategy professional near you right away. 

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