Who should buy an annuity?

The optimal age for someone to consider buying an annuity depends on individual financial circumstances, retirement goals, and risk tolerance. Generally, annuities are most beneficial for individuals approaching retirement or already in retirement.

Here are some factors to consider:

Approaching Retirement: Individuals in their late 50s to early 60s may consider purchasing an annuity as they transition into retirement. At this stage, securing a guaranteed income stream can help cover essential expenses and provide peace of mind.

Early Retirement: Some people may choose to retire early, in their 40s or 50s, and may benefit from purchasing an annuity to supplement other retirement income sources and ensure long-term financial security.

Risk Aversion: Those with a low tolerance for market risk or who prioritize financial security may find annuities attractive, regardless of age. Annuities with guaranteed income or principal protection can provide stability and peace of mind.

Longevity Concerns: Individuals who are concerned about outliving their savings may benefit from purchasing an annuity at any age. Annuities with lifetime income options can provide protection against longevity risk, ensuring a steady income stream for life.

Legacy Planning: Those who wish to leave a financial legacy for loved ones may consider purchasing an annuity with death benefit options. Annuities can provide a way to pass on assets to beneficiaries efficiently and securely.

Tax Planning: Investors seeking tax advantages may consider purchasing annuities to grow their retirement savings tax-deferred. This strategy may be beneficial at any age, depending on individual tax situations and retirement goals.

Ultimately, the decision to buy an annuity should be based on careful consideration of individual financial goals, risk tolerance, and retirement needs. Consulting with a life insurance agent or retirement specialist can help individuals determine if an annuity is suitable for their unique circumstances and if so, at what age it may be most advantageous to purchase one.

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INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

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