Why Annuities Make Sense: A Deep Dive into Retirement Portfolio Protection

Annuities can play a powerful role in retirement portfolio protection, offering guaranteed income, downside risk mitigation, and longevity protection. In an era of market volatility and increased life expectancy, annuities provide stability that traditional investments often can't. Fixed indexed and deferred income annuities are especially popular in 2025, as they offer growth potential with principal protection. Used wisely, annuities can complement 401(k)s and IRAs by covering essential expenses, reducing sequence-of-returns risk, and improving peace of mind. While not right for everyone, they make sense for retirees seeking predictable cash flow and financial security that lasts a lifetime.