2022-2024 Rate Hike Cycle: The Best Thing That Happened to Annuities

The Fed's aggressive rate hike cycle fundamentally changed the annuity landscape. MYGA Rate Evolution: Period Best 5-Year MYGA Change Jan 2022 2.50% Baseline Jan 2023 4.25% +1.75% Jan 2024 5.25% +1.00% Apr 2026 6.65% Current FIA Cap Rate Evolution: - 2022: Average caps 3-5% - 2024: Average caps 8-12% - 2026: Top caps at 9.75% What changed: Higher interest rates allow insurance companies to invest premiums at better yields, which flows through to higher caps, participation rates, and MYGA guarantees. The opportunity window: If rates begin to decline, today's annuity rates may be remembered as a golden era. Clients who locked in during 2024-2026 will have captured historically strong guarantees.