Gearhead Jim
Full time employment: Posting here.
Insurance companies supposedly invest SPIAs in long term bonds. If true, that would mean that higher rates on long term bonds would provide a higher payout for every dollar invested in a SPIA.
That seems to be true, I recall that SPIA payouts were higher when I retired in 2005 than five years later, despite me having (on average) a shorter life expectancy at that point.
Does anyone have historical info on SPIA payouts purchased at various times over the last 50 years or so?
Since today's higher rates seem to be mostly at the short end, I doubt that they are producing higher payouts right now. But some day?
That seems to be true, I recall that SPIA payouts were higher when I retired in 2005 than five years later, despite me having (on average) a shorter life expectancy at that point.
Does anyone have historical info on SPIA payouts purchased at various times over the last 50 years or so?
Since today's higher rates seem to be mostly at the short end, I doubt that they are producing higher payouts right now. But some day?