Tag: Could Annuities Be More Valuable When Rates Are Low?

Piles of coins decreasing in size with arrows pointing down on top of each stack

Are annuities more valuable when interest rates are low?  That seems counterintuitive.  After all, annuities produce higher monthly incomes when interest rates are high.  But consider the extreme case of a zero interest rate.  That scenario eliminates the option of living off the income from investments in retirement.  The choices come down to various alternativ…