Should You Buy An Annuity In Your 20s?

Shawn Plummer

CEO, The Annuity Expert

Reasons Not to Buy an Annuity in Your Twenties

  • Future Guaranteed Retirement Income: In your twenties, investing in an annuity for retirement income might not be ideal due to the long-term nature and potential investment growth elsewhere.
  • Flexibility and Growth: Younger investors typically benefit more from flexible and higher-growth investment options.

When It’s Appropriate to Consider an Annuity at Any Age

  • Fixed Index Annuities: These can be suitable for any age if you seek a safe investment similar to a bond.
  • Risk Aversion and Stability: Fixed index annuities provide stability and are less risky, making them a viable option regardless of age.
What Age To Consider An Annuity

Comparing Investment Options by Age Group

Age GroupIdeal Investment OptionReason
20sStock Market, Mutual FundsHigher growth potential, flexibility
30s and AboveAnnuities, BondsStability, guaranteed income in retirement


While you should generally avoid buying an annuity in your twenties if seeking guaranteed retirement income, fixed index annuities are a safe investment option without age restrictions. Understanding the balance between growth potential and stability is key to making the right investment choice at any age. 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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