Can You Buy an Immediate Annuity at Any Age?

Shawn Plummer

CEO, The Annuity Expert

Can you buy an immediate annuity at any age?

Yes, you can buy an immediate annuity at any age. An immediate annuity is a financial product where you pay a lump sum to an insurance company. In return, they start paying you a guaranteed income almost immediately, often within a year of purchase. The age at which you choose to buy an immediate annuity can affect the income you receive. Typically, the older you are when you purchase the annuity, the higher the annual payments will be, as the insurer expects to make fewer payments due to a shorter life expectancy.

Key Factors Affecting Immediate Annuity Payments

  1. Age at Purchase: Older buyers generally receive higher payments.
  2. Amount Invested: Larger investments can yield higher income streams.
  3. Interest Rates: Prevailing interest rates at the time of purchase can influence payment amounts.
  4. Payout Options: Options like life-only or joint-survivor affect payment sizes.
Can You Buy Immediate Annuities At Any Age

Benefits and Considerations of Immediate Annuities

  • Guaranteed Income: Provides a steady income stream, beneficial for retirement planning.
  • Inflation Impact: Payments are usually fixed and may lose purchasing power over time.
  • Lack of Liquidity: Once invested, the funds are typically locked in and cannot be easily accessed.

Related Reading: Can I Buy an Immediate Annuity at Age 45?

Conclusion

Immediate annuities can be useful for retirement income, irrespective of age. They offer a predictable income stream, but it’s important to consider factors like inflation and lack of liquidity. Understanding how age influences the annuity payments is crucial for making an informed decision. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, 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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