Clients sometime ask whether they can index their annuity payments. The answer is “yes” but what is the cost? Indexing can be a gamble once you are in or past your sixties. Have a look at the example below.
Comparing an Index Annuity vs Standard Annuity
Annuity Details
Single Life, Male, Age 65, No Guarantee, $100,000, No Index & 2% Index
View Results: Index Annuity Quote | Standard Annuity Quote
Summary
Standard Annuity: $561.73 monthly income
Indexed Annuity: $459.95 monthly income
You can see from these figures, just how long it will take before the indexed annuity payments draws level with the payment of a standard annuity.