Ask most retirees what they want from their money, and you’ll hear the same thing: certainty. Not “maybe” returns, not complex charts — just the reassurance that they can pay their bills, enjoy their lives, and not worry about running out.
That’s where guaranteed income products, like annuities, come in. Yet annuities are often misunderstood or lumped together as high-cost, inflexible tools. The truth is more nuanced.
In today’s environment of market volatility and rising longevity, annuities can play a valuable role in a diversified plan. According to LIMRA, over $370 billion in annuities were purchased in 2023 — a record high — as retirees look for ways to lock in income. When structured wisely, they can serve as a “floor” under your retirement: covering essentials like housing, healthcare, and food, so that your other investments can focus on growth.
But not all annuities are the same. Choosing the right product (and knowing what portion of your assets to allocate) requires careful evaluation. It’s not about putting everything into guaranteed products — it’s about using them as one layer in a bigger, more flexible income strategy.
Why this matters?
Guaranteed income isn’t about fear — it’s about freedom. The freedom to spend, enjoy, and live your retirement without constant anxiety about the markets or your portfolio. And that kind of confidence is worth planning for.