Can You Buy an Annuity at Any Age? (2025 Retirement Guide)

Yes, you can — but that doesn’t mean you should.

Annuities are available to buyers from ages 18 all the way into their 90s. But just because it’s possible doesn’t mean it’s appropriate. The real question isn’t “Can I?” — it’s:

“Do I need to transfer risk right now?”

This guide breaks down when annuities make sense — and when they don’t — by focusing on what truly matters: your goals, not your age.

What Is an Annuity, Really?

An annuity isn’t some magic investment play—it’s a contract. Period. You’re transferring specific risks you don’t want to shoulder anymore to an insurance company, and in exchange, you get contractual guarantees you can actually count on. That could mean income you can’t outlive, principal protection when the markets tank, coverage for long-term care, or leaving a guaranteed legacy for your family. If you’re not trying to solve for one of those real-world problems, then you probably don’t need to buy an annuity yet—because that’s all they do, and that’s the truth.

Stan’s PILL Framework: The Only 4 Reasons to Ever Buy an Annuity

Before you consider buying, ask: What problem am I solving?

Stan The Annuity Man® uses the PILL acronym to simplify it:

P – Principal Protection
I – Income for Life
L – Legacy (money left to heirs)
L – Long-Term Care or Confinement Care

An annuity should only be used when it provides one or more of these outcomes. If not, hold off.

Can Young People Buy Annuities?

Technically yes. But in almost all cases, they shouldn’t.

If you're under 40:

You still have a long life expectancy
You can afford market ups and downs
You need growth — not limits

Most annuities limit upside. So, if you’re in your 20s or 30s and someone’s pitching you an annuity, chances are it’s not suitable.

Rare Exceptions:

Structured settlements from lawsuits
Legacy planning (e.g., joint life annuities with a child or grandchild)
High-net-worth asset protection cases

But these are rare. For the vast majority of young people, annuities are simply not appropriate.

What About Buying in Your 50s, 60s, or 70s?

This is the most common time to start seriously considering an annuity. Why? Because it’s the phase where retirement planning becomes real — and so does the desire to reduce risk and secure income.

Annuities make sense when:

You're approaching or entering retirement
You want guaranteed lifetime income
You're worried about outliving your savings
You want to protect a portion of your principal
You’re looking for alternatives to traditional long-term care insurance

At this stage, many people are shifting from accumulation to preservation and payout — which is what annuities are built for.

Real Example: A Grandfather’s Legacy Income Plan

A client in his 80s called after the birth of his first great-grandson. He wanted to leave something meaningful — not just a lump sum, but income that would last his grandson’s entire life.

We structured a joint lifetime income annuity — pairing the grandfather’s and the great-grandson’s life expectancies. This created a contractual income stream that increases with inflation over time and continues as long as the child lives.

That’s the power of using annuities strategically — not just based on age but based on legacy intent.