With inflation lingering, interest rates rising, and stock market uncertainty rattling investors, many Americans are rethinking their retirement plans. Traditional strategies built on market growth and portfolio rebalancing aren’t always enough to guarantee peace of mind in retirement—especially for those nearing the end of their working years.
That’s why annuities—particularly direct-to-consumer (D2C) annuities—are gaining new attention.
Historically, annuities came with high fees and were sold by brokers earning steep commissions. But the landscape has changed. Today’s annuities, especially those offered directly to consumers through digital platforms can be more transparent, have lower costs, and tend to be designed with flexibility in mind.
If you’re unsure whether annuities should be part of your financial plan, here are five signs it may be time to take a closer look.
1. You’re Worried About Outliving Your Money
One of the biggest risks in retirement isn’t market loss—it’s longevity. With life expectancy rising, it’s not uncommon for retirement to last 25 to 35 years – sometimes even longer. And if you don’t have guaranteed income sources like a pension, the risk of outliving your savings can becomes very real.
That’s where annuities shine. A properly structured annuity can guarantee monthly income for life, no matter how long you live. Products like ParityFlex™ from Gainbridge allow you to lock in a fixed rate of growth and convert it into income later—with the option to receive payments for life.
“One of the most overlooked benefits of annuities is their ability to eliminate the fear of outliving your savings,” says Brandon Lawler, RICP®, AAMS™, a retirement specialist at Gainbridge.
2. You Want Protection From Market Volatility
If you’re close to retirement—or already there—the thought of another 20% market drop may feel unbearable. Annuities, particularly fixed and fixed indexed types, offer protection from these swings. Your principal is shielded, and your growth is not dependent on the stock market.
For example, SteadyPace™, a fixed annuity offered by Gainbridge, guarantees a fixed interest rate for a set term—providing growth you can count on regardless of how the market performs. It could be compared to a CD, but with the potential for higher interest rates and more flexibility.
3. You’re Tired of High Investment Fees
In the past, many annuities were sold through financial advisors or insurance agents who earned commissions of 5% or more. On top of that, some contracts had hidden administrative fees and costly riders.
Today, D2C platforms cut out the middleman, giving consumers direct access to annuity products without paying broker commissions. This results in lower overall fees and clearer terms.
You can now compare rates, contract durations, withdrawal options, and income guarantees—all from your computer or phone.
4. You’ve Maxed Out Other Retirement Accounts
If you’ve already hit the contribution limits on your 401(k) or IRA and are looking for another way to build tax-deferred wealth, annuities may offer a compelling option.
Unlike taxable savings accounts, annuities allow your contributions to grow without taxes on interest or gains until you begin taking withdrawals. Over time, this can lead to greater compounding and more income in retirement.
And because there are no income limits for contributing to an annuity, they can be a great option for high earners who want to supplement other retirement savings vehicles.
5. You Want Simplicity and Control Without a Middleman
If you prefer to handle your financial planning independently—or just want to avoid high-pressure meetings—direct-to-consumer annuities can offer a refreshingly simple solution. Providers let you shop, compare, and purchase annuities entirely online, with full transparency into rates, fees, and payout options.
This level of control can be especially appealing to younger investors or tech-savvy retirees who want to manage their income strategy from the palm of their hands.
Final Word
Annuities aren’t for everyone—but for those looking for predictable income, protection from market risk, and lower investment costs, they can be a smart addition to a diversified retirement plan.
With the rise of digital, direct-to-consumer platforms, annuities are no longer just for the wealthy or financially sophisticated. They’re now becoming more accessible, transparent, and reasonable than ever.
Whether you’re a pre-retiree trying to lock in guaranteed income or a younger saver looking for long-term tax-deferred growth, these five signs may indicate that it’s time to consider an annuity. In a world of financial uncertainty, a little predictability can go a long way.
Image Credit: Photo by Arturo Añeza; Pexels
