The Summer of Stability: Why Annuities Make Sense in an Unpredictable Market

June 5, 2025

Summer often brings a slower pace — a chance to relax, reset, and take stock. But in today’s economy, that seasonal calm hasn’t extended to financial markets. With fluctuating interest rates, volatile stock performance, and ongoing economic uncertainty, it’s no wonder savers and pre-retirees are searching for something that offers more predictability.

Annuities offer just that — a stable and reliable solution that helps protect what you’ve earned while supporting your long-term goals. Whether you're drawn to the guaranteed rates of a multi-year guaranteed annuity (MYGA) or the tax-deferred growth of a deferred annuity, these products can bring peace of mind in turbulent times.

What Are Annuities and How Do They Work?

Often used as part of a retirement plan, an annuity is a contract with an insurance company designed to provide income. Depending on the product, you can fund it with a lump sum or through a series of payments.

Common types include:

• Multi-year guaranteed annuities: Offer a fixed interest rate over a set number of years, providing protection from market fluctuations
• Deferred annuities: Allow savings to grow tax-deferred, with income payouts beginning at a later date

Unlike market-based investments, annuities are contractual. That means they’re built on guarantees — not guesses — giving you a clearer picture of what your financial future could look like.

Why Annuities Stand Out in an Unstable Market

The stock market doesn’t take summers off — and often, volatility heats up just as investors try to step away. Between headlines about inflation, recession fears, and global tension, many people are rethinking how to protect their retirement dollars.

Annuities stand out in this environment because they offer:

• Principal protection: Your original investment is shielded from market losses.
• Guaranteed interest or income: Products like MYGAs let you lock in returns without tying your outcome to Wall Street swings.
• Tax-deferred growth: Earnings accumulate without immediate tax impact, helping savings grow faster than in a taxable account.

Unlike stocks or mutual funds, annuities provide a layer of predictability — a financial “sunscreen” that shields your long-term goals from market overexposure.

How Annuities Bring Peace of Mind to Retirement Planning

A growing body of research shows that retirees with predictable income report greater confidence and lower financial stress. Bankrate reports that individuals with steady retirement income — such as from annuities — are better equipped to stay the course during market downturns. This stability reduces the likelihood of making emotionally driven decisions like selling off investments during dips, which can permanently impact retirement savings.

Annuities help create this reliability by converting a portion of your savings into guaranteed monthly income. That means essentials like groceries, utility bills, or even grandkids’ ice cream cones can be covered — no matter what the headlines say. Especially during times of heightened volatility, having a portion of your income shielded from market swings can ease anxiety and provide much-needed peace of mind.

The tax advantages of annuities also add flexibility to your retirement income plan. Because earnings grow tax-deferred, you have more control over when to draw income, helping manage tax exposure and reduce sequence-of-return risk.

The 1891 Financial Life Approach to Annuity Solutions

At 1891 Financial Life, we offer annuity products designed with long-term stability and simplicity in mind. Our MYGA and deferred annuity options provide dependable growth potential and are backed by the strength of our organization.

As a fraternal benefit society, we go beyond offering financial products. We’re rooted in service, supporting our members and the communities they call home. That’s how we go “Beyond Life Insurance,” and it’s what makes our annuity solutions different.

Make This a Summer of Stability

Markets may shift, but your retirement plan doesn’t have to. Annuities give you the ability to build a solid foundation — one that brings balance to your broader financial strategy while freeing other investments to pursue higher (albeit bumpier) returns.

Whether you're preparing for retirement or simply want to shield part of your portfolio from volatility, annuities can help you take a confident step forward.

At 1891 Financial Life, we understand that no two financial journeys are alike. Our annuity solutions are designed to offer clarity, control, and confidence at every stage of planning. Connect with our team today to explore your options and take the next step toward a more stable retirement season.

About 1891 Financial Life

Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”

At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.