Should I Buy an Annuity at 60? At 65? At 70? Timing Guide

Does Age Matter When Buying an Annuity?

Absolutely. Your age at purchase is one of the most important factors in annuity pricing, payout rates, and suitability. Here’s what you need to know about timing.

Buying at 60

Best for: Deferred annuities to start income at 70+

• Income payouts per dollar are lower (longer expected payment period)
• More time for accumulation — income base grows longer
• Excellent for FIAs with income riders: 10-year deferral at guaranteed 7% doubles your income base
• Not ideal for immediate income (SPIA payouts are lower at younger ages)

Buying at 65

Best for: Balanced approach — some growth, income starting soon

• Sweet spot for many retirees transitioning from accumulation to income
• SPIA rates start becoming meaningful
• FIA with 5–7 year deferral still provides solid income base growth
• Aligns well with Medicare eligibility and early Social Security decisions

Buying at 70

Best for: Maximizing immediate income, covering RMD obligations

• SPIA payouts are significantly higher than at 65
• Aligns with full Social Security benefits and RMD start age
• Shorter surrender period matters less (shorter time horizon)
• Great time to convert IRA assets to guaranteed income

Buying at 75+

Best for: Late-stage longevity protection

• Highest SPIA payouts per dollar
• Shorter surrender periods available
• QLACs can still be purchased (income by 85)
• Less emphasis on accumulation; focus on pure income

The General Rule

The best time to buy an annuity is when it solves a specific problem. If you need income now, buy a SPIA or activate an income rider. If you’re planning ahead, buy a deferred product earlier and let the income base grow. Don’t buy too early (before 55) — surrender periods and complexity don’t justify it.