Retirement Planning/after annuity surrender period
I have a fixed annuity that is soon to be out of the 5 year surrender period. If I want to enter into another contract with a different company that gives a better rate, is there a time limit of how long it can stay there before I transfer it? Thanks
Yes, once your surrender charge period is up you can move to another companies annuity with no surrender charge. You would then be subject to the new surrender charge period of the new annuity. However, right now, many newer annuity products are allowing you to withdraw your funds at any time with no surrender charge. You can withdraw your principal but you won't earn any interest. This is a good feature in case interest were to go up on the near future. Rates are so low at this time, that insurance companies realize that people may not feel comfortable locking up their money for a long period of time at such low rates.
You also have the option of keeping your money in your current annuity and you would not be subject to any surrender charges moving forward. If your current annuity rate is comparable or better than the new rates, that could be your best option.
I hope this answers your question. Let me know if it doesn't. Best of luck!