If you’ve noticed more retirees talking about annuities lately, you’re not imagining it.
Annuity sales are near record highs — and there are very specific reasons why.
Some people ask: Are annuities good? Bad? A scam?
The real answer is simpler — they solve problems retirees are facing right now.
Let’s break it down so you can decide if they make sense for you.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using our annuity calculator
1. Interest Rates Are the Highest They’ve Been in Years
This is the biggest driver.
Just a few years ago, fixed annuity rates were sitting around 1–2%.
Today, many MYGAs (Multi-Year Guaranteed Annuities) are paying 5%+ guaranteed.
That’s a huge difference.
💡 Pro Tip: If rates were still at 1–2%, far fewer retirees would even be looking at annuities.
👉 Want to see what annuities are paying right now? Check the live payouts at https://johnstevenson.com/annuity-calculators/
2. Over 10,000 People Are Turning 65 Every Single Day
We’re at peak retirement age in the U.S.
That means:
- More people leaving the workforce
- More people shifting from growth → income
- More people realizing they don’t have 20 years to recover from a market crash
Even 10 years from now, we’ll still see around 10,000 people a day hitting retirement age.
This isn’t a short-term trend.
3. Retirees Want Protection After a Great Market Run
Yes — the stock market has done well.
But many retirees are asking:
- “How much risk do I really need anymore?”
- “What happens if we get a bad decade?”
- “What if I need income no matter what the market does?”
Annuities aren’t about beating the market. They’re about protecting what you already built.
👉 Want help deciding how much protection makes sense? Schedule a call here.
4. MYGAs: The “CD Alternative” Retirees Love
MYGAs are fixed annuities that work a lot like CDs — but often pay more.
Why retirees like them:
- Guaranteed rates for 2–10+ years
- Daily interest crediting
- Tax-deferred growth (unlike CDs)
💡 Important Insight: Short-term MYGAs (2–3 years) often don’t make sense.
The sweet spots are usually 5, 7, or 10 years, where rates jump meaningfully.
Example:
- $500,000 at ~5.5%
- Around $27,000 in year one
- Over $850,000 guaranteed by the end of a long-term period
👉 Curious if a MYGA fits your situation? Schedule a consultation with me to learn more.
5. Lifetime Income Is the #1 Reason Retirees Buy Annuities
This is where annuities really shine.
Many retirees want income that:
- Never runs out
- Never goes down
- Pays no matter how long they live
Income rider annuities provide guaranteed lifetime income — often for both spouses.
Example scenario:
- $500,000 investment
- Guaranteed income of $50,000+ per year for life
- Payments continue as long as either spouse is alive
💡 Key Advantage: Unlike SPIAs or DIAs, income rider annuities are flexible:
- You don’t pick the income start date upfront
- You can delay income for higher payouts
- You can cancel and get your money back (subject to surrender charges)
👉 Want to compare lifetime income options side-by-side? Book a call here.
6. Annuities Make Market Volatility Easier to Live With
Here’s something most people don’t talk about.
When part of your income is guaranteed:
- Market drops feel less stressful
- You don’t panic sell
- You can let growth assets recover
Your lifestyle isn’t dependent on the stock market’s behavior.
You can still:
- Travel
- Visit family
- Enjoy retirement
The income shows up like clockwork.
7. Growth vs Income: The Real Retirement Question
Growth is great — until you actually want to use your money.
Ask yourself:
- Am I always going to stay in growth mode?
- Is my money mostly for someone else?
- Or do I want to enjoy what I saved?
There’s nothing wrong with legacy planning.
But taking care of yourself first often means your family never has to take care of you.
That’s not selfish — that’s responsible planning.
Conclusion
Retirees aren’t buying annuities because of hype.
They’re buying them because:
- Rates are high
- Retirement numbers are exploding
- Guaranteed income solves real problems
- Peace of mind matters more than ever
Annuities aren’t for everyone.
But for income, protection, and certainty — they do exactly what they’re designed to do.
Need help with finding the best annuity for your retirement?
Click here to schedule a call with me.
On the call, I can help you:
- Determine what type of annuity is best for you
- Find the highest paying annuities for your unique situation
- Answer any other questions you may have