What Is The Average Age Of An Annuity Buyer?

Shawn Plummer

CEO, The Annuity Expert

Have you ever wondered about the demographic and the average age of an annuity buyer? Today, we will delve into this intriguing topic, deciphering the statistics and shedding light on the average age of annuity buyers. This discussion will unravel the data and impart valuable insights into the age-driven preferences and financial behaviors associated with the diverse landscape of annuity investment.

Confused About Annuities?

Are you new to annuities and unsure where to begin? Visit our Annuity Learning Lab for expert guidance and insights.

What is an Annuity?

Before diving into the age demographics, let’s first understand an annuity. An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments. In return, the insurer agrees to make periodic payments to you immediately or at some point in the future. Annuities are designed to help secure a steady cash flow in retirement.

Average Age Of An Annuity Buyer

Unraveling the Average Age of Annuity Buyers

The financial decisions we make are often a reflection of our life stage. With annuities providing a reliable income stream in the later years of life, it’s no surprise that this financial product appeals most to individuals closer to or in retirement.

Research indicates that the average age of an annuity buyer is typically in their mid-50s to early 60s. This age group often invests in annuities as a strategic move to safeguard their post-retirement financial stability, converting their lifelong savings into a predictable, continuous income stream.

Average Age Of An Annuity Buyer

Decoding the Variable Annuity Buyer

As we delve deeper, let’s focus on a specific type of annuity—the variable annuity. With variable annuities, the payout changes based on the performance of the investment options chosen. This type of annuity introduces a level of market risk but also offers the potential for higher returns.

The average age of a variable annuity buyer is generally slightly younger, typically in their late 40s to mid-50s. Why the difference? A possible explanation is that younger individuals may have a higher risk tolerance, enabling them to weather the potential market fluctuations associated with variable annuities.

The Importance of Age in Annuity Purchasing Decisions

The decision to invest in an annuity, variable or otherwise, is a major one that significantly impacts one’s financial future. It’s a decision often influenced by age due to the time horizon and factors such as risk tolerance, income stability, and retirement goals.

As our data suggest, those nearing retirement are the most likely candidates for annuity investments, with variable annuity buyers typically representing a slightly younger subset. This understanding can serve as a valuable baseline for financial professionals and potential investors as they navigate the complex landscape of retirement planning.

Average Age Of An Annuity Buyer

Next Steps

Remember, financial decisions are profoundly personal and vary significantly from one individual to the next. Always seek professional advice to ensure your investment choices align perfectly with your unique financial landscape and retirement goals. Keep your future self in mind when you make decisions today, for your choices now are the blueprint for your financial security later.

Age Of An Annuity Buyer

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Can I purchase an annuity at 40?

Yes, you can purchase an annuity at any age.

Do all annuities have guaranteed payouts?

No, not all annuities have guaranteed payouts. Some are fixed-rate annuities that provide a guarantee of return on the principal investment. Still, these are usually limited to a set amount or duration and may not be suitable for all investors. Other annuities may provide an income stream that is variable and dependent on the performance of underlying investments. It is important to understand the different types of annuities and their associated risks before investing in one.

Is 70 too old to purchase an annuity?

No, 70 is not too old to purchase an annuity. Although annuities are suitable for retirees, you can purchase one at any age. Your financial professional should be able to help you understand the different types of annuities and determine which might be most advantageous depending on your personal situation.

Do Annuities have fees?

Yes, annuities do have fees. The most common fees associated with an annuity include mortality and expense (M&E) charges, administrative fees, surrender charges, and any applicable taxes.

Should I consult with a financial professional before purchasing an annuity?

Yes, it is always wise to consult with a qualified financial professional before purchasing an annuity.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

Scroll to Top