If you’re thinking about buying an annuity, timing matters more than most people realize.
And one of the biggest regrets I hear from retirees is simple: “I wish I had done this sooner.”
The truth is, waiting too long to buy an annuity can cost you tens of thousands per year in retirement income. Let’s break down exactly why that happens, and how to avoid it.
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!)
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Why Waiting Feels Like the “Safe” Choice
A lot of people delay buying an annuity because they think:
- “I can get better returns in the market.”
- “I’ll wait until I retire.”
- “Rates might improve later.”
On the surface, that sounds reasonable.
But in reality, waiting often means missing out on guaranteed growth that directly increases your future income.
👉 Want help comparing your options? Schedule a call with John Stevenson.
The Hidden Cost of Waiting: Lost Growth
When you buy an annuity with an income rider early, you’re not just locking in income, you’re locking in guaranteed growth on your future payout.
For example:
- Someone invests at age 60 and waits 5 years
- Their benefit base grows significantly (even with zero market growth)
- That higher base produces much larger lifetime income
In one real scenario:
- $800,000 grows to over $1.1 million benefit base
- Producing nearly $89,000 per year for life
That growth doesn’t happen if you wait.
👉 Want to see what your income could look like? Schedule a call.
What Happens If You Wait Too Long?
Let’s say you had the money at age 55, but waited until 60 to buy.
Instead of deferring and growing your income, you go straight into an immediate payout.
Here’s the difference:
- Waited & deferred: ~$89,000/year
- Bought later (no deferral): ~$57,000/year
That’s a $30,000+ annual difference… for life.
Over time, that gap can mean hundreds of thousands of dollars lost.
The Market Timing Trap
Many people wait because they believe they can outperform annuity growth in the market.
Here’s the problem:
- You need to beat a guaranteed ~7%+ growth rate
- You must do it consistently
- You must avoid major losses
Even one bad year… like a 15% drop, can derail your entire plan due to sequence of returns risk.
And unlike an annuity, market losses directly reduce your future income potential.
💡 Pro Tip: Retirement isn’t about chasing the highest return, it’s about securing reliable income.
👉 Want help balancing growth and guarantees? Schedule a call.
Why Many People Don’t Act Sooner
Another big reason people wait?
They simply don’t know where to look, or they were shown the wrong options.
Many advisors only offer:
- A limited number of carriers
- One-size-fits-all products
- Options that aren’t optimized for income
That’s why shopping across multiple companies matters.
👉 I can show you multiple top options side-by-side. Schedule a call.
Today’s Rates Make Timing Even More Important
Right now, annuity payouts are some of the highest they’ve been in over a decade.
That’s driven by the current interest rate environment.
People are locking in:
- Higher lifetime income
- Better payout percentages
- Stronger guarantees
Waiting could mean:
- Lower future rates
- Missed income opportunities
- Less certainty in your plan
When Waiting Does Make Sense
To be fair… there are times when waiting is necessary or reasonable:
- You can’t access funds yet (like a 401(k) before 59½)
- You’re still building your retirement savings
- You have a short-term income strategy already in place
But if you have the money and the timeline, delaying purely for “maybe better returns” is where mistakes happen.
Conclusion
Waiting too long to buy an annuity can cost you:
- Lower lifetime income
- Lost guaranteed growth
- Increased market risk
- Missed high-rate opportunities
The earlier you structure it correctly, the more powerful the outcome tends to be.
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