Variable annuities aren't as directly affected by interest rate cuts because their performance is tied to market-based investments, not interest rate fluctuations. When rates drop, however, investors may shift toward variable annuities to seek higher returns, since fixed-rate products offer lower payouts in a declining rate environment. 

This shift happens because variable annuities can capitalize on market growth, unlike fixed options that are more constrained by interest rates. Despite the potential for higher returns, variable annuities are often complex, costly, and come with greater risks. 

With interest rates recently being high, many investors favored fixed annuities, but lower rates could make variable products more attractive again. Ultimately, investors need to weigh the risks and rewards carefully before deciding.

Finsum: It’s important to also think about how interest rates affect the underlying products of annuities; this gives true insight into the viability of those products.