Why Annuities Are the Retirement Anchor in 2025
🏦 What Is an Annuity?
A contract that turns part of your savings into guaranteed income—for life or a set time.
🌟 Why Are Annuities So Popular Now?
✅ Trend 📈 Reason
Longevity People are living longer—more income needed
Market Volatility Stocks are unpredictable, income isn’t
Inflation Annuities can offer inflation-adjusted payouts
SECURE Act 2.0 New laws make annuities easier to use in retirement plans
🔍 3 Questions to Ask Before Buying
- When do I need the income—now or later?
- Do I want safety, growth, or both?
- Am I OK locking up some money?
✅ 2025 Pro Tip:
Use annuities for essential expenses, and invest the rest for growth.
Think of it as building your “retirement paycheck.”
🧭 Annuities for Beginners: 5-Step Starter Guide (July 2025 Edition)
Step 1: Understand What an Annuity Really Is
An annuity is a contract with an insurance company. You give them money now (either as a lump sum or over time), and in return, they promise to pay you a set income later—usually during retirement.
Think of it like this:
🔒 You “lock in” some of your savings to turn into future paychecks.
Step 2: Know the 3 Main Types of Annuities
Here’s the simplest way to break it down:
💡 New in 2025: “RILAs” (Registered Indexed-Linked Annuities) are a hybrid—offering partial market upside with limited downside.
Step 3: Know Why People Choose Annuities Now
In 2025, millions of retirees are choosing annuities because:
- 🧓 They’re worried about outliving savings
- 📉 They’re tired of market swings
- 🛡️ They want guaranteed income to cover essentials
- 🏛️ New laws (like SECURE Act 2.0) made annuities easier to use inside retirement plans
Step 4: Ask Yourself These Questions
Use these prompts before buying:
- ✅ Do I want a guaranteed income for life?
- ⏱️ When do I want the income to start—now or later?
- 🔁 Do I want flexibility or am I OK locking up the money?
- 🔍 Do I understand the fees and fine print?
- 🧑💼 Should I talk to a fee-only advisor (someone who doesn’t make commission)?
Step 5: Take Action
Start with small steps:
📄 Download a free annuity evaluation worksheet (I can help you find one!)
💬 Ask your employer or advisor if annuities are available in your 401(k)
👀 Compare simple annuities on trusted websites (like Blueprint Income or Fidelity)