Annuities Can Help Prevent Outliving Savings

Annuities address longevity risk: the chance retirees outlive savings as longer lifespans, early market losses, and inflation put traditional withdrawal rules under more pressure.
They work best when guaranteed income covers essentials like housing, utilities, healthcare, groceries, and insurance, letting the rest of a portfolio stay invested for growth.
For people concerned about very late-life needs, deferred income annuities can start payments at older ages, offering future cash flow with lower upfront cost.
The trade-offs matter: some annuities carry high fees, complex terms, surrender charges, limited liquidity, and fixed payments that can lose purchasing power.
Used modestly, a low-cost income annuity can add dependable monthly cash flow and peace of mind, rather than replacing an entire retirement portfolio.