The primary reason for buying an annuity is to , often intended to last for the remainder of a person's life. This fundamental purpose addresses longevity risk , which is the possibility of outliving your retirement savings. Core Purpose and Primary Motivation

Why buy an annuity, are they good investments? | New York Life

: Unlike standard investment portfolios that require careful withdrawal management, many annuities contractually guarantee payments until death.

: Fixed and indexed annuities insulate principal from stock market downturns, ensuring that a person's retirement baseline is not compromised during economic instability.

: They act as a foundational "income floor," helping to cover essential living expenses like housing and healthcare that Social Security or standard pensions may not fully meet.