How Interest Rates Affect Annuities

Find out why higher interest rates benefit some annuities more than others.

Unstable interest rate stack - rate hike causing recession, slow down or investment crisis.
(Image credit: Getty)

Annuities base their returns on market interest rates. Given that rates were recently at their highest level since 2001, conditions over-all are favorable for buying an annuity. But higher rates benefit some products more than others.

Here, we look at how higher interest rates impact different types of annuities. 

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David Rodeck
Contributing Writer, Kiplinger's Retirement Report