One of the most common questions people ask is:
“What’s the best age to buy an annuity?”
You’ll hear a lot of vague answers online. Some say “as early as possible,” others say “wait until retirement.”
The truth is, those answers are incomplete—and following them blindly can cost you flexibility and income.
Let’s break down the right way to think about annuity timing.
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Why Age Alone Is the Wrong Question
The biggest mistake people make is focusing only on age.
Annuities aren’t about your birthday.
They’re about what you need the money to do.
Before buying an annuity, you should be asking:
- Do I need guaranteed income?
- Am I protecting money or growing it?
- When do I want income to start?
💡 Pro Tip: The purpose of the annuity matters more than the age you buy it.
👉 Want help matching annuities to your goals? Schedule a call with me.
Buying an Annuity Too Early: The Hidden Risk
Some people buy annuities in their 40s or early 50s because they’re told to “lock in guarantees early.”
Here’s the issue:
- Your money gets tied up
- Income may start too late or too early
- You lose flexibility when life changes
That doesn’t mean annuities are bad early—it means they must be structured correctly.
👉 Unsure if it’s too early for you? Book a strategy call.
The Sweet Spot: Pre-Retirement Years (Late 50s to Early 60s)
For most people, the best age to buy an annuity is 5–10 years before retirement.
Why?
- You can still grow safely
- You can lock in future income
- You maintain control and flexibility
This is where fixed and fixed index annuities shine.
💡 Pro Tip: This is often the best time to position income without rushing into payouts.
👉 Want to see annuity options for your timeline? Schedule a call today.
Buying an Annuity At or After Retirement
If you’re already retired—or retiring now—annuities can still make sense.
They’re commonly used to:
- Replace a paycheck
- Create lifetime income
- Reduce stress from market volatility
At this stage, payout rates are higher because of age—but flexibility is lower.
👉 Already retired and want guaranteed income? Book a call here.
How Much Matters More Than When
Another key point people miss:
It’s not just when you buy—it’s how much you put in.
Insurance companies limit:
- The percentage of assets allowed
- How much can go into one contract
- Over-concentration risk
Putting in too much can cause an application to be rejected.
💡 Pro Tip: Annuities work best as part of a retirement plan—not the entire plan.
So… When IS the Best Age to Buy an Annuity?
The best age is when:
- You want safety
- You want guaranteed income
- You want predictability in retirement
For most people, that’s late 50s to mid-60s—but the right answer is always personal.
I’ve help clients compare hundreds of annuities, transparently, with no pressure.
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