Annuities gain attention as Australians age

Retirement

Below are my comments to “Annuities gain attention as Australians age” by Ruth Liew

Life annuities which guarantee you a life income are now in demand across the world.

Americans who used to buy variable annuities tied to the stock market,are turning more and more to the guaranteed-for-life product which has no variation in income and no further costs.Australians also are joining Canadians who have stepped up their rate of purchase of theses products.

These 3 countries are among the most affected by wild stock market volatility and the non-existent interest rates.The governments have been manipulating both to drive the public into the stock market where many people are nervous.

But where else can they go? The governments know that their public have no choice as a 2% return results in a negative return after inflation and taxes.