What's the Best Age to Consider an Annuity?

One of the most common questions retirees ask is whether they're "too early" or "too late" for an annuity. The honest answer is that the best age depends on your goals, your other income sources, and how close you are to needing the money. Still, each decade brings its own considerations.

In your 50s

This is often about accumulation and protection. With years still ahead, some people use a fixed indexed annuity to grow a portion of their savings with principal protection, shielding it from a downturn as they approach the retirement "red zone." Long surrender periods are less of a concern when you won't need the money for a while.

In your 60s

As retirement nears or begins, the focus often shifts to converting savings into income. This is when lifetime income features become especially relevant — locking in a guaranteed paycheck to cover essential expenses so the rest of your portfolio can stay invested.

In your 70s and beyond

Immediate or income annuities can turn a lump sum into a higher payout, since payments are based partly on life expectancy. The trade-off is reduced liquidity, so it's important to keep enough accessible money for emergencies and to weigh how an annuity fits with required minimum distributions.

Because the right approach depends on your full picture, it's worth a conversation before deciding. Tim Hartle's reviews are complimentary and educational. Annuities are not FDIC insured, and guarantees depend on the claims-paying ability of the issuing insurance company.

This article is for general educational purposes only and is not financial, tax, or legal advice. Rules and product features vary by situation and by state. Please consult a qualified advisor about your own circumstances. Any annuity guarantees discussed here are subject to the financial strength and claims-paying ability of the issuing insurance company. Annuities are not FDIC insured and are not bank guaranteed.