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Good News! Gift Annuity Rates Just Increased
There is good news for those who established or plan to establish a gift annuity after June 30, 2022. They will receive larger payments than they would have received from an annuity established earlier.
The payout rate, also known as the annuity rate, is the percentage of the contribution paid to beneficiaries. For example, if an annuity were established with a contribution of $10,000 in July of 2022 and there was one beneficiary aged 75, the annuity rate would have been 6% and the annual amount paid to the beneficiary would be $600. If that annuity had been established earlier, when the old rate applied, the annuity rate would be 5.4% and the annual payment would have been $540. This would have been an 11% increase in the amount of payment.
The graph below compares the old and new rates at three ages.
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