Why People Buy Annuities

The Core Reason: Income You Can't Outlive

The number-one reason people purchase annuities is to create a guaranteed stream of income in retirement — income that continues for life, regardless of how markets perform or how long they live.

Top Reasons Retirees Choose Annuities

• Guaranteed lifetime income — A predictable paycheck in retirement.
• Protection from market losses — Many annuities limit or eliminate downside risk.
• Tax-deferred growth — Earnings compound without yearly taxation.
• Longevity protection — Reduces the risk of running out of money.
• Peace of mind — Less stress about market volatility and withdrawal rates.
• Legacy planning — Optional death benefits can pass value to beneficiaries.

Who Tends to Buy Them?

Annuity buyers typically include pre-retirees and retirees who want a portion of their portfolio dedicated to guaranteed income, those without traditional pensions, and people who simply prefer certainty over market exposure for at least some of their savings.