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Americans Shift to Annuities for Guaranteed Retirement Income

Americans are increasingly using annuities for guaranteed retirement income, with annuity considerations up 21.5% in 2023. Learn how this shift addresses market volatility and longevity risk.

This news matters because it highlights a critical evolution in retirement planning that directly impacts financial security for millions. With Social Security facing long-term sustainability questions and market volatility creating uncertainty, annuities offer a solution to the growing fear of outliving savings—a concern nearly half of retirees share. The shift toward using home equity and other assets to fund annuities transforms one-time windfalls into lifelong income streams, addressing longevity risk that traditional investments often fail to cover. For individuals, this means greater predictability in retirement, reduced tax burdens through deferral strategies, and a safeguard against unexpected life events like early layoffs. On a broader scale, this trend could reduce reliance on social safety nets and promote more resilient retirement ecosystems, making it essential reading for anyone planning their financial future.