Read an article written by Corporate Insight Analyst Colleen McGarry for Life and Health Advisor.


How Low Can We Go?

Annuity manufacturers are countering a persistent low-interest environment with new products, new market strategy

In December 2008, a few months after the largest government bailout of an insurance company in U.S. history, the Fed dropped the interest rate to the all-time low: 0.25%. Since then, the U.S. has maintained an interest rate of 2.5% or lower, affecting the mindset of Americans looking to invest in retirement income. Annuity products often rely on interest rates as a means for determining pricing, potentially affecting the ultimate payout that annuitants receive. How is the industry dealing with this ongoing low interest rate environment?

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