Stubborn inflation, a volatile stock market, and rising prices that affect everyday life are just some of the issues these Americans struggle with. In addition, longer life expectancies and concerns about Social Security cuts contribute to the anxiety about being financially ready in retirement.
Yet for a specific cohort, these concerns are alleviated by owning annuities.
In fact, a new survey from Nationwide found that a whopping 76% of annuity owners “are confident they will be able to retire when they want.”
At the same time, it’s important to note that investors are now planning on delaying their retirement, expecting to retire at 64.3, six months later than in 2023, according to the Nationwide survey.
A separate TIAA survey also found that two-thirds of Americans feel that retiring between ages 65 and 70 is “unattainable.”
Underscoring the concerns, the TIAA survey also found that 30% of Americans are not confident “they will be able to cover day-to-day expenses for the remainder of their lives.”
Against that backdrop, Rona Guymon, senior vice president of Nationwide Annuity Distribution, said that her firm’s findings were not surprising, as annuities allow owners to retire when they want.
“Annuities are one of the only investment vehicles that can provide guaranteed income for life, no matter how long someone lives and regardless of the economic environment – and advisors are doing a great job conveying that information to their clients,” said Guymon.
Guymon also said that it was great to see a majority of consumers feeling confident in their annuity providers’ ability to make payments as promised. At a time when businesses continue to feel the impact of economic volatility, annuity providers are still strong and stable, she said.
Interest in Annuities is Also Rising
The Nationwide survey found that Americans’ appetite for annuities is also increasing, with 31% of investors “who have never purchased an annuity significantly more likely to consider a purchase today than in 2023, where the figure stood at 5%.
According to Guymon, today’s volatile markets and longevity concerns are directly impacting investor demand for annuities as they realize the value of protection-based solutions offering guaranteed income for retirement security.
“In fact, according to research from the Nationwide Retirement Institute and the American College of Financial Services, extending a retirement by just five years from 30 to 35 years increases the risk of exhausting savings by a striking 41% based on historical market returns. That risk intensifies as lifespans lengthen – making annuities offering guaranteed income even more attractive,” she said.
Finally, she added that advisors and financial professionals are also contributing to the rising interest in annuities, helping to dispel misperceptions.
Top Misconceptions About Annuities
Guymon said that one of the most common myths she hears about annuities is that retirement income isn’t truly guaranteed.
But as she points out, annuities are contracts with insurance companies, so the guarantee of future payments is based on the insurer’s financial strength, which is routinely assessed and rated to ensure the company remains strong and stable.
Another misconception is that annuities are too costly. In turn, Guymon recommends that those interested in purchasing an annuity should work with an advisor who can help break down the various annuity options and the fees associated with each one, including the level of downside protection and income guarantee you get in exchange for any additional expenses.
Annuities also offer a range of fees, or no fees at all. Investors can work with their advisor to determine which annuity is right for them based on their retirement goals and fee sensitivity,” she said.
Bobbi Rebell, CFP, consumer finance expert at CardRates.com, also noted that people can sometimes be intimidated by annuities because they are perceived as very expensive and complicated.
“The basic structure is actually very simple. That said, there are things like optional riders and variable products that do create more nuances and complications,” she said. “They are also often seen as products only for older people. In fact, middle-aged people can benefit from setting themselves up for a steady and guaranteed income stream as well.”
What Are Annuities’ Benefits, And Are They Suited For Everyone?
Some of the unique benefits annuities offer include guaranteed income, which is becoming exceedingly important.
“Nationwide’s research shows that while lifespans are rising well into the 90s and beyond, financial planning hasn’t kept pace – leaving millions facing the growing risk of outliving their savings,” Guymon said.
Additional benefits include market protection against market volatility, making them a smart investment choice in today’s volatile environment, she added.
The tax deferral is also of note — you only pay taxes when you begin withdrawing money in retirement.
Finally, their customization is also appealing. As Guymon explained, annuities can be tailored to unique goals and circumstances.
Who Should Consider an Annuity?
Regarding suitability, several experts said this can only be answered by considering the entire financial picture of a client.
Philip Gallant, Managing Partner of The Optimus Group, said that he always shows his clients a plan with and without annuities and lets the prospect decide which one they want.
“Annuities are not suitable for clients who need liquidity from those funds, and they are suitable for people who do not need income if a rider is included for a fee,” he said.
That’s why working with a financial advisor or CFP can help Americans navigate financial complexities and set up a customized solution, a phenomenon that’s been on the rise in the past few years.
The Nationwide survey found that 48% of investors “said they are working with a paid financial professional, up from 36% in 2023.”
“And those who work with a financial professional are also more likely to have discussed annuities (78% in 2025 vs 66% in 2023), and more likely to say their financial professional views annuities positively (55% in 2025 vs 39% in 2023),” according to the survey.
Tom Buckingham, chief growth officer at Nassau Financial Group, said that this trend underscores the complexity of today’s retirement landscape, where multiple income sources, longer lifespans, and market volatility make integrated planning and informed decision-making essential.
“Retirement is complicated, and a professional can help you understand your sources of income and expected expenses in retirement, and identify how to close any gap and protect against various risks, including market, longevity, and more,” he said.
