When is the best time and what is the best age to buy an annuity? That depends on your individual circumstances and preferences. It also depends on the specific annuity age requirements, which are determined by the provider.
With a deferred annuity, the earlier you buy (the younger you are), the more time your premiums can benefit from tax-deferred growth. An early purchase may be especially attractive if you have already contributed the maximum amount to other tax-advantaged accounts like an IRA or 401(k).
However, you can always buy an annuity closer to retirement after allowing your investments to grow in a brokerage account or qualified retirement plan. Then, buying an annuity can be part of the retirement income plan you develop before retirement.
The right time and the best age to buy an annuity will ultimately depend on your needs and your situation. But it’s never too late to consider adding an annuity to your retirement income plan to gain some peace of mind.
designed to generate guaranteed lifetime income.
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