Are annuities safe during depression?
But to your question, I believe that during a depression annuities are the safest vehicle relative to all others, for a number of reasons. Annuity companies are required (by most states) to hold reserves nearly ten times that of banks. Most have a minimum rate, to protect against inflation risk, making them superior to cash under the mattress. Most have favorable liquidity option which, paired with the higher reserving requirements, helps reduce liquidity risk, that is, the risk that you won’t be able to get at your money when you need it.
