Annuities: 10 Things You Should Know

Love ’em or hate ’em, annuities are back. And as always, there's plenty you should know before getting an annuity for yourself.

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Out of favor for a long while, annuities — the controversial and often misunderstood long-term insurance contracts — are getting more attention from investors due to higher interest rates. In 2022, annuity sales crushed the previous record — set way back in 2008, when investors fled to annuities for safety during the financial crisis. Today, some contracts are offering a guaranteed return of over 5% a year. 

“We’ve seen a pretty dramatic increase in annuity receptiveness and sales,” says Matthew DiGangi, head of annuity distribution for MassMutual

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David Rodeck
Contributing Writer, Kiplinger's Retirement Report