Buying Annuities For Inflation Protection

annuity educationAlthough inflation might seem silly to many while under all-time low interest rates that don’t seem to be going anywhere for at least a few more years, some people are actually quite worried about inflation in the near future.  Some of these investors have been flocking to commodities such as gold and silver.  Some have found certain investments with inflation riders and TIPS.  And some are buying annuities to help protect them from future inflation.  In fact, just a year ago only about 1 percent of people bought annuities for inflation protection.  This year, in 2012, the percentage of people who bought annuities to protect against inflation soared to 6%. Even though a low number, it is still a huge increase from last year, especially considering both the CPI (Consumer Price Index) and the overall interest rate environment is actually lower compared to the year prior.  Thankfully, some of the carriers have also begun to get more aggressive with inflation benefits and riders on their annuities.

 

Stay tuned for more information on inflation and annuities.

 

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