00:00 Speaker A
What will lower rates mean to the retirement industry?
00:03 Speaker B
So, people still have to save, right? And the rate environment is more or less where do you put your money. And so regardless of rates, annuities are still a very valuable option because ultimately they’ll still outperform CDs. They’ll outperform CDs in any market. They will provide guaranteed downside protection in any market as opposed to the S&P. And so we see demand continuing to grow simply because of the growing aging population and we’ve already seen it today. rates are well off their peak highs, demand is still incredibly strong for annuities.
00:30 Speaker A
But what, you know, rates lower for longer, do you think people are going to have to take more risk? Are they going to be forced into taking more risk if they want to earn return returns?
00:41 Speaker B
I mean it’s been easy, easy the past two years. Dump your money in a CD, earn what, 3 or 4%, make a good return, call it a day.
00:47 Speaker A
Yeah, I would say rates lower for longer, there’s a temptation to take more risk and again, that’s where a really smart integrated annuity strategy. Think of again, a typical saver that’s going to get to about a million dollars. You know, 30 to 40% of that, put that in a nice basket of annuities, completely protects you from low rate risk as well as volatility risk.