Are Annuities a Good Investment for 70-Year-Olds?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Annuities for Seniors

Annuities can be a good investment and part of a retirement plan, especially for those in their 70s. However, the suitability of different types of annuities varies based on individual circumstances and financial goals, making some types of annuities more desirable than others for 70-year-olds.

Multi-Year Guaranteed Annuities (MYGAs)

  • Pros: Offer a fixed interest rate for a specified term, providing a predictable income stream.
  • Cons: Limited liquidity and potential penalties for early withdrawals.

Fixed Indexed Annuities

  • Pros: Tied to a market index, offering potentially higher returns than MYGAs without direct market exposure.
  • Cons: Can be complex; returns are subject to caps and participation rates.

Long-Term Care Annuities

  • Pros: Provides long-term care coverage, which can be crucial at this age, combined with annuity benefits.
  • Cons: Requires a lump-sum investment and may have eligibility criteria based on health.

Variable Annuities

  • Pros for Others: Offers investment options in various securities, with the potential for higher returns.
  • Cons for 70-Year-Olds: Higher risk due to market exposure, and fees can be high.

Registered Index-Linked Annuities (RILAs)

  • Pros for Others: Offers partial protection against market losses while allowing for some growth.
  • Cons for 70-Year-Olds: Complexity and risk exposure make them less suitable for older investors.

Annuity Types and Suitability for 70-Year-Olds

Annuity TypeSuitability for 70-Year-OldsProsCons
MYGAGoodPredictable income, Fixed ratesLimited liquidity
Fixed Indexed AnnuityGoodHigher potential returnsComplexity, Capped returns
Long-Term Care AnnuityGoodDual benefitRequires significant investment, Health criteria
Variable AnnuityNot GoodHigh risk, High fees
RILANot GoodComplex, Market exposure


For a 70-year-old, MYGAs, Fixed Indexed Annuities, and Long-Term Care Annuities can be good investments, offering stable income, potential for growth, and additional benefits like long-term care coverage. However, Variable Annuities and RILAs are generally not advisable due to their higher risk and complexity. Each individual should consider their specific financial situation and goals before making an investment. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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