With 2024-25 being the year with the greatest number of retirees hitting 65,1 there is a significant demographic of people reaching retirement age who have questions on what are the next steps for their investments. This aging population, often referred to as the “silver tsunami” has several key financial challenges they will need to face in short order.
In light of these challenges, an annuity can be a potential option for this population as they seek to grow their wealth in retirement. Here we list several reasons why an annuity can be an appealing investment for retirement:
An annuity – which is a contract with an insurance company that can provide a steady income stream or serve as protection from loss of principal – can be an effective tool in retirement planning by providing a steady and reliable source of capital. Here’s how an annuity can be used in retirement: