June 2019: Bond Yields and Annuity Rates Down Again

Published July 8, 2019

In response to a decline in bond yields, many insurers reduced annuity rates this month, but top fixed annuity rates have held steady. Lincoln Financial increased longevity annuity rates, but all other carriers have reduced rates. Sentiment has shifted from believing the Federal Reserve would not change rates any time soon to conventional wisdom now being that there could be two rate cuts this year.

Annuity Intelligence Report

Most insurers decreased their immediate annuity, longevity annuity and fixed annuity rates last month, in response to lower bond yields. Click to download June 2019’s Annuity Intelligence Report.

It May Be a Good Time to Buy a Fixed Annuity

Although rates are down across the board, this may actually be a good time to consider a fixed annuity purchase. In this article, I show that the top 5 year fixed annuity rate’s spread over 5 year Treasuries has increased significantly over the last 6 months.

What’s Happening in the Market

There has been a meaningful shift in market sentiment over the last week. Read our article here to learn more about what has been happening and what may be in store for the remainder of this year.

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Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

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