1What Happened
Annuity rates remain historically strong heading into late May 2026. The best MYGA (Multi-Year Guaranteed Annuity) rates are up to 6.50% for a 7-year term. SPIA payouts are reaching up to $1,696 per month on a $250,000 premium for a 65-year-old, a level not seen for most of the previous decade. Fixed Indexed Annuities (FIAs) are showing cap rates of 8-12% on annual point-to-point strategies with 0% downside floor.
2The Detroit Angle
For GM, Ford, and Stellantis retirees who already have a pension, an annuity can fill the gap between what the pension covers and what they actually need. For public sector workers without a pension or with a smaller one, locking in a SPIA or MYGA at today's rates could create the floor of guaranteed income they need before Social Security starts.
3Janine's Take
Right now, annuity payouts are at levels most retirees haven't seen in 15 years. A 65-year-old with $250,000 to set aside could receive over $1,600 per month for life from a Single Premium Immediate Annuity — guaranteed, no matter what the market does. The Federal Reserve held rates steady again in April, which means this window is still open — but these kinds of rates don't last indefinitely.
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