The primary reason for buying an annuity is to , often intended to last for the remainder of a person's life. This fundamental purpose addresses longevity risk , which is the possibility of outliving your retirement savings. Core Purpose and Primary Motivation
: Unlike standard investment portfolios that require careful withdrawal management, many annuities contractually guarantee payments until death.
While individual financial goals vary, the overarching driver for most purchasers is creating a "private pension" that provides a predictable paycheck.