Can an Annuity Help You Retire With Confidence?

November 24, 2025

When it comes to preparing for retirement, certainty is a rare commodity. That’s why many individuals are turning to annuities — a financial vehicle that can provide dependable income throughout retirement. If you’re asking, “Are annuities a good option for retirement income?” the answer depends on your needs — but for many, the right annuity brings both stability and peace of mind.

At 1891 Financial Life, we help members plan for the future with more than numbers. We offer solutions that support your goals and reflect your values — so you can retire with confidence, knowing your income will be there when you need it.

What Are Annuities and How Do They Work?

An annuity is a financial vehicle designed to provide a steady income, often for life. Think of it as your own personal pension — you contribute money, either in a lump sum or over time, and in return, the annuity pays you a stream of income in retirement.

There are different types of annuities. Fixed annuities offer predictable returns, while immediate annuities start paying income shortly after you contribute. Deferred annuities grow over time, letting your savings accumulate until you’re ready to retire. Each option offers its own mix of growth potential, access, and payout structure — which is why guidance is key.

Why Choose an Annuity for Retirement?

Annuities are not meant to replace your retirement plan — they’re designed to enhance it. Adding an annuity can help you create a more secure, balanced income strategy. One of the most appealing features is the lifetime income — the ability to receive monthly payments for the rest of your life, regardless of how long you live.

They can also help shield your savings from market downturns, providing a layer of protection in unpredictable times. With today’s longer life expectancies, an annuity reduces the very real risk of outliving your savings — and that means more confidence for you, and more certainty for the people who depend on you.

And because 1891 Financial Life is a fraternal benefit society, the earnings from our annuities don’t go to shareholders — they help fund scholarships, member programs, and charitable outreach. So your retirement income doesn’t just support your future — it strengthens the community, too.

What Should You Consider Before Buying an Annuity?

Before choosing an annuity, think about your financial timeline. Do you want income right away, or are you looking to build it for later? How comfortable are you with market risk, and what other income sources do you have?

Interestingly, a recent survey found that about half of retirees with $100,000 or more in assets would be willing to purchase an annuity at current market rates — yet only 12% actually do. This gap, often referred to as the “annuity puzzle,” isn’t driven by a lack of interest. Instead, it reflects confusion about how annuities work, where to buy them, or how they fit into a broader retirement strategy. Even when offered versions with liquidity or death benefit enhancements, respondents in the study didn’t significantly change their preferences — showing that most concerns stem from a need for clear guidance, not product flaws.

It’s also essential to understand the product’s structure. Some annuities may have fees or restrictions on withdrawals. That’s why working with a trusted representative is so valuable. At 1891 Financial Life, our licensed professionals offer thoughtful, no-pressure guidance to help you weigh your options.

Turn Retirement Goals Into Guarantees

Planning for retirement doesn’t have to mean guessing. Annuities can offer dependable income, reduced risk, and the peace of knowing your loved ones won’t have to shoulder the burden.

Whether you're just beginning to plan for retirement or looking to refine your current strategy, 1891 Financial Life is here to help. Our team takes the time to understand your needs and provide solutions rooted in compassion, expertise, and community values. Let’s work together to secure a retirement you can feel confident about.

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. Our commitment to excellence has been recognized by Forbes, naming 1891 Financial Life among “The World’s Best Life Insurance Companies” in 2023 - and for the second time, as one of “America’s Best Life Insurance Companies,” ranking #1 in Term Life Insurance for 2026. 

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.