Fixed annuity rates have climbed to 5.8% — the highest in two decades — making them an attractive option for retirees seeking guaranteed income in an uncertain market.
Current Top Rates
- 5-year fixed annuity: 5.8% (MassMutual)
- 3-year fixed: 5.5% (New York Life)
- Single Premium Immediate Annuity: 7.2% payout rate at age 65
- Compare: 10-year Treasury at 4.3%
Pros and Cons
Annuities offer guaranteed returns and tax-deferred growth, but come with surrender charges (typically 5-7 years), limited liquidity, and no inflation protection for fixed products. Financial advisors recommend allocating no more than 25-30% of retirement savings to annuities.
