nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
I the UK the current payout rate for a fixed single life annuity bought by a 65 year old is 4.8%. That is an IRR for someone who lives to 85 of -0.4%. So most people would be better off just leaving the money in the bank and a 5 year CD ladder would be even better and just as safe.
Most people buying a lifetime annuity at current rates are either a fools or expect to live to 100. However, TIAA are still giving good value. As an example I have a TIAA-Traditional account that currently pays 4.8% interest. I recently got a quote for an annuity and the payout rate was 6.5% which implies a 4.8% rate of return for a 55 year old living another 30 years. Those numbers won't convince many people on here, but they are better than you'd get most other places.
Most people buying a lifetime annuity at current rates are either a fools or expect to live to 100. However, TIAA are still giving good value. As an example I have a TIAA-Traditional account that currently pays 4.8% interest. I recently got a quote for an annuity and the payout rate was 6.5% which implies a 4.8% rate of return for a 55 year old living another 30 years. Those numbers won't convince many people on here, but they are better than you'd get most other places.
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