Slowly but surely annuity rates are rising. The Fed, the rapidly increasing budget deficit as a result of the tax cut and other factors are all adding up to slow but sure rising rates. Yet market timers should remember they lose about 75% of the time so our advice on when to purchase a group annuity contract will always remain when the settlement cost is in your favor. In the immortal words of the great sportswriter and novelist Dan Jenkins, “There ain’t nothing in this world that’s dead solid perfect.”
We believe that the following rates applied to the mortality scale MP-2017 will give you a pretty good indication of the price of a group annuity contract. Use the smaller rate for small contracts.