The Cost of Waiting: A Tale of Two Retirement Paths
January 13, 2026
What if one financial decision could change the course of your retirement? For many approaching their 50s, that decision might be when to begin securing a fixed indexed annuity as part of their long-term financial strategy.
Annuities, especially fixed indexed annuities, are powerful financial vehicles that offer principal protection, tax-deferred growth, and the opportunity for lifetime income. But the actual impact of an annuity comes not just from what it is but also when you begin.
Why Annuities Offer Stability in a Volatile Market
Fixed indexed annuities provide a unique blend of protection and potential. They protect your principal while offering growth based on a market index, unlike retirement accounts that tie your savings closely to stock market performance. You get the opportunity for gains, with no exposure to market losses.
In times of economic uncertainty or inflation spikes, annuities can offer a predictable, steady income when you need it most. And when timed right, they can also help reduce the risk of outliving your savings.
Two Paths, Two Outcomes: A Tale of Retirement Timing
Consider two scenarios, both featuring Maria, a 50-year-old woman planning for retirement.
Path One: Maria Starts Early
At age 50, Maria allocates $100,000 into a fixed indexed annuity. Over the next 10 years, her money grows tax-deferred with no market risk. When she turns 60 and begins drawing income, she receives approximately $1,100 per month for the rest of her life. Her early decision means:
- A full decade of compounded growth
- Protection from downturns like the 2020 pandemic or any future market shocks
- Locked-in rates when they were at a favorable level
Path Two: Maria Waits Until 55
Maria delays her decision, choosing to fund the same annuity at age 55. While still beneficial, her monthly income starting at 60 is closer to $700–$750. In waiting, she gives up:
- Five years of compounding
- Possibly better crediting rates from earlier years
- The peace of mind of knowing her plan was already in motion
This side-by-side comparison shows that the cost of waiting isn't just about lower income. It's about missed opportunities, reduced security, and increased stress in the years leading up to retirement.
Think about where you were financially five years ago. Think about where you are today. Are you happy with the result? Now think about your financial future in five years. If you don’t change what you are currently doing to support your retirement income, will you be happy five years from now? Funding an annuity is an ideal financial vehicle to inject discipline and predictability into your retirement accumulation plan.
Why Timing Is More Than Just Numbers
Financial decisions aren't always logical. Sometimes, they're emotional. People hesitate to act because they fear locking in funds, making the wrong choice, or losing flexibility. But annuities are not about restriction. They are about creating control and confidence.
For women, especially, who statistically live longer and face greater retirement challenges, securing a reliable source of income can be a critical safety net. A nonqualified annuity can provide stability outside of a traditional retirement account, offering an additional layer of security for those who want to diversify their retirement plan.
Take Control of Your Future, Starting Now
The earlier you begin planning, the more your money can work for you. Fixed indexed annuities allow you to secure your future while protecting what you've earned. For Maria — and for many others — the difference of five years was more than time. It was a lifetime income advantage.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
FAQ About Retirement Paths
What is the financial impact of delaying annuity purchases for retirement?
Delaying an annuity purchase means fewer years for your money to grow, lower compounding potential, and possibly lower crediting rates. This can result in significantly reduced monthly income during retirement.
What makes a fixed indexed annuity different from other options?
Unlike variable annuities or stock-based investments, fixed indexed annuities protect your principal while still allowing for growth tied to a market index. You won't lose value due to market downturns.
Are annuities only for people close to retirement?
Not at all. Starting earlier can lead to more growth and more substantial income potential later. Annuities are flexible and can be utilized as part of a comprehensive financial strategy at various stages of life.
Can I access my money if I need it?
Annuities typically include provisions for partial withdrawals or income riders, but terms vary. Consulting with a trusted advisor can help you determine the best structure for achieving your goals.
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 take pride in giving back to the communities 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.