What Should I Do With My Annuity At 70?

Shawn Plummer

CEO, The Annuity Expert

The golden years are upon you, and myriad retirement and financial planning decisions come with them. You’re not alone if you’ve asked yourself, “I’m 70. What should I do with my annuity?”. Many seniors grapple with the best way to leverage annuities to meet their evolving needs. To help you navigate this important decision, we’ve crafted a guide that breaks down key considerations, always keeping your best interests at heart.

Confused About Annuities?

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

Understanding Required Minimum Distributions (RMDs)

What are RMDs?

When you reach the age of 72, the IRS mandates that you begin withdrawing a certain amount from your annuities annually, known as Required Minimum Distributions.

Why is it essential for you?

If you don’t take these RMDs, you could face stiff penalties, up to 50% of the amount not withdrawn.

Preparing for Long-term Care

The Reality of Long-term Care:

With age, the need for long-term care, be it at home or in a facility, becomes more likely. It’s wise to plan for these potential costs.

How can your annuity help?

Some annuities have long-term care riders. If yours does, it can be tapped to cover these expenses.

The Pros of Buying Life Insurance

Why consider life insurance now?

Life insurance can provide a tax-free inheritance to your heirs or can be used to cover final expenses.

How does it connect to my annuity?

You can use distributions from your annuity to pay premiums on a life insurance policy.

Is It Time to Move to a Better Annuity?

Why consider moving?

Not all annuities are created equal. As the market evolves, better options that align more with your current needs might be available.

How do you move?

This process, known as a 1035 exchange, allows you to switch annuities without tax penalties.


Jane, aged 70, isn’t satisfied with the interest rate on her current annuity. She uses a 1035 exchange to move to a better annuity with higher returns and added benefits.

What Should I Do With My Annuity At 70: Conclusion

Reaching 70 is a milestone that brings a unique set of financial considerations. While your annuity has likely served you well so far, reviewing how it fits your current and future needs is essential. Whether it’s understanding RMDs, preparing for long-term care, considering life insurance, or moving to a more beneficial annuity, your decisions will set the stage for a comfortable and secure future. Remember, you’ve worked hard for these funds; ensuring they work equally hard for you in your golden years is your right and responsibility.

What Should I Do With My Annuity At 70

Request A Quote

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

Contact Us

Frequently Asked Questions

Do seniors pay taxes on annuities?

Seniors do pay taxes on annuities, specifically on the earnings portion of withdrawals or regular payments. The amount taxed depends on the type of annuity and distribution method. Tax-deferred growth is common, but eventual withdrawals are subject to income tax.

Should you invest in an annuity at 72?

Investing in an annuity at 72 depends on individual financial goals, risk tolerance, and income needs. Annuities can provide guaranteed income but are less flexible and may have fees. Always consult financial and tax advisors for personalized guidance.

What do I do with an annuity that has matured?

For a matured annuity, you generally have options like annuitizing for regular income, opting for a lump-sum withdrawal, or rolling it into another investment vehicle. Tax implications and fees may apply. Consult a financial advisor for personalized advice tailored to your needs.

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