Is Your Old Annuity Hurting Your Retirement? LFG Daily - October 27, 2025

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Luke Lloyd, CEO Lloyd Financial Group

Is Your Old Annuity Costing You Money?

It might be time for a financial checkup.

If you purchased an annuity years ago, it may have seemed like a safe and steady option at the time — maybe it’s been paying you a “guaranteed” 3% rate. But here’s the problem: the world has changed dramatically since then.

Interest rates have surged, and today’s money market accounts, CDs, and 10-year Treasuries are paying well above 3%. That means your “safe” annuity could actually be holding you back — locking a portion of your wealth into a low-yield investment while new opportunities are available.

Let’s put it in perspective:

• A $250,000 annuity earning 3% generates $7,500 per year.

• The same $250,000 earning 5.5% could generate $13,750 per year.That’s over $6,000 more annually — or $60,000 over the next decade.

  
  

Why Old Annuities Lag Behind

Annuities purchased in a low-rate environment were designed with the economic realities of that time. Insurance companies rarely “re-rate” old contracts to match today’s higher interest rates. Unless you’ve reviewed your contract recently, it’s possible your money has been underperforming for years.

What You Can Do

1. Review the Contract Terms: Some older annuities have surrender charges or tax implications for withdrawals. But many contracts are now out of surrender, giving you full control of your funds.

2. Explore 1035 Exchange Options: The IRS allows you to move money from one annuity to another tax-free through what’s called a 1035 exchange. This can let you capture a better rate or more flexible income benefits without triggering taxes.

3. Compare Against Today’s Market: Newer annuities and fixed-income instruments can offer higher guaranteed rates, more liquidity, and better inflation protection than older products.

   
   

The Bottom Line

If you’ve had an annuity for more than 5–10 years, it’s worth having it reviewed. The insurance company isn’t going to call you and tell you you’re getting a bad deal — but we will.

Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.

Colin Symons, CIO Lloyd Financial Group

Core CPI was 0.2% vs. est. 0.3%, making the Y/Y 3% vs. est. 3.1%. The headline number was 0.3% m/m vs. est. 0.4%. That has the Y/Y number at 3%, lower than the 3.1% estimate but higher than the prev. 2.9%. Shelter inflation was the big driver. To be clear, sticky inflation is still a problem, but that’s also been priced in by the market and isn’t a current issue.

PMI was better than expected, at 54.8 vs. prev. 53.9, with Services driving most of the improvement. It’s early, but Q4 data is holding up well. This is the likely reason inflation expectations held up, not CPI.

The US and China reached a trade consensus, with Xi and Trump expected to sign a broad trade agreement on Thursday. Green stock markets all around, unless you’re a precious metal. It’s interesting that bonds aren’t seeing much selling on the news.

Deals were made with most of SE Asia, really, ex-Japan and Korea.

Durable Goods, Dallas Fed Manufacturing, and New Home Sales, today.

What does it all mean? The deal with China isn’t any huge change from where we were before the trade spat but removing uncertainty takes a load off. We await the Thursday signing but this is a good start to a big week.

Don’t leave your financial future up to chance. Let’s build a plan that gives you confidence today and peace of mind for tomorrow. Click here to schedule a meeting — I’m here to help you take the next step toward financial freedom.

Book a Meeting with LFG

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