Guaranteed Income for Life? Here’s What You Need to Know About Annuities in 2025

How to know if an annuity fits your plan

An annuity might make sense if:

• You’ve already built some savings or have other retirement income, but you want one reliable monthly stream to cover basics (like housing or groceries).

• You’re in your late 50s to early 70s and want to lock in peace of mind for retirement years.

• You’re not planning to use the money anytime soon — because annuities aren’t designed for quick withdrawals.

On the other hand, skip it (or wait) if:

• You’re still paying off debt.

• You’ll need access to that money soon.

• You haven’t maxed out other retirement tools like 401(k)s or IRAs that might have better growth potential.

The right annuity should complement your existing plan, not replace it.