When you think of annuities, you already have a basic purpose in mind. Annuities are purchased by people who are looking for a stable financial future post retirement. When you purchase an annuity, you will expect to get a fixed return at regular intervals post retirement.
The returns that you will receive depend entirely on the kind of annuity plan you choose. If you have chosen a fixed annuity, you will get a fixed interest whereas if you opt for a variable annuity, your returns will depend upon the market conditions or how the equity in which your investment is made performs. There are other types of annuities too which all offer different rates depending upon the type of annuity and the annuity provider.
While the annuity rates are dependent basically on the types of annuities, there can be fluctuations in the annuities rates due to various factors. Some people might feel that annuity rates fluctuate seasonally. However, that is not the fact. Annuity plans are not seasonal products. This means that you donít buy an annuity only during a certain time period. An annuity plan can be purchased at any time of the year. However, the annuity rates vary depending on various other factors. These factors can be the size of your pension fund, your income, age and your health among the other things. Another prominent factor for your annuity rate fluctuation is the annuity rates offered by your annuity provider which depend upon the market conditions. (more...)