Annuity Rates & Trends (Updated Monthly)
The trends in annuity interest rates tend to mirror the trends in 30-Year US Treasury Notes. That's because insurance companies typically invest as much as 70% of their capital in fixed income securities. (Contrary to popular belief, insurance companies in the aggregate invest less than 15% of their overall assets in stocks.)
To get a handle on the trends in annuity interest rates we track 30 Year US Treasury Yields. This is a conservative proxy for estimating the interest rates that insurance companies earn in their portfolios.
In the first chart, we compare the US Treasury’s 30-Year Note against the US Treasury's 10-Year Note. Since the duration of a 30-Year Treasury Note (black line) is 30 years, its yield tends to be significantly higher than the yield on the 10 year T-Note (green line).
In the following charts, we compare the monthly income received from an immediate annuity (at different ages, for men and women) with the US Treasury’s 30-Year Note. Generally, there is a visible correlation between the annuity payout graphs (green and pink lines) and the 30-Year Note rate (dotted lines).
If you'd like to get a free, personalized annuity quote without any sales agents calling you, click this link to our Instant Annuity Calculator page.