Annuities are oftentimes used by retirees for generating income. These flexible financial tools can help to alleviate the concern about running out of money before “running out of time.” Depending on the annuity, they can also allow tax-deferred build-up of funds – which means that your money can grow and compound over time. But even though they can offer many benefits to retirees and investors, is there a time when you become too old to purchase an annuity?
Unfortunately, the answer is yes…possibly.
The answer is as clear as mud, right?!
As it pertains to annuity age requirements, there really is not one single age that is considered to be too old or too young. Rather, this will be based more on what your objectives are. Likewise, even if you are “the ideal age” for buying an annuity, it might not necessarily mean that one is right for you.
Why Consider an Annuity?
Annuities are an insurance product, and as such, they are typically used for protection purposes – in this case, they can protect an ongoing income stream for the remainder of your life, no matter how long that may be.
Depending on the specific product, an annuity can also provide you with protection of principal – as well as protection of your previous gains – in any type of stock market or economic environment.
In addition to that, while fixed and fixed indexed annuities include a number of nice guarantees, you could also achieve market or index-linked growth with a variable or indexed annuity product.
Today, many annuities offer a number of other “bells and whistles,” too, such as:
- A death benefit that is paid to one or more named beneficiaries
- Penalty-free access to funds (even during the surrender charge period) if you are diagnosed with a chronic or terminal illness, or if you must reside in a nursing home for a certain minimum period of time
What is the Best Annuity Age?
If you’ve been considering the purchase of an annuity, you will have to fit within the offering insurance company’s parameters. This can include a minimum and/or a maximum age at the time of application.
On the younger end, the age cut-off may be 40, 50, or over, while on the older end of the spectrum, it could be 80, 90, or even higher. Because of that, it is recommended that you work with an annuity specialist who has access to multiple products and insurance carriers so that your needs can be matched with the right option.
Matching Your Goals and Your Age with the Right Annuity
At Annuity Gator, our retirement income specialists can teach you all about annuities – including the right age to purchase one. We can also directly compare multiple annuities with one another – including an annuity that you may already own.
So, if you want to know more about the right age to purchase an annuity, feel free to contact us by phone at (888) 440-2468 or send us an email by going to our secure online contact form and we will be happy to answer any of the questions or concerns that you may have.