Blog Article

When Is the Best Time to Consider Buying an Annuity?

General - FAQ 6.4 2026

If you’re starting to think seriously about retirement, it’s natural to ask: When is the appropriate time to buy an annuity?

There’s no single “right” age or moment that works for everyone. Instead, the appropriate time to consider buying an annuity often depends on your goals, your retirement timeline, and how you want to balance growth, protection, and income. Annuities are insurance products, and whether an annuity is appropriate depends on an individual’s financial situation, objectives, and risk tolerance.

Here’s how to think about timing in a way that’s general and practical. 

multi-generational family sitting on the beach playing in the water on a sunny day

There Isn’t One Perfect Time—But There Is a Right Time for You

Annuities are designed to support long-term retirement goals, not short-term decisions. Rather than focusing on market timing or age alone, it’s more helpful to consider where you are in your retirement journey and what role you want an annuity to play. Annuities typically involve long-term commitments, and withdrawals may be subject to surrender charges or other limitations as described in the contract. 

Many people consider annuities during key transition points, such as:

  • Approaching retirement
  • Entering retirement
  • Reassessing income needs after retirement

Buying an Annuity Before Retirement

Some individuals choose to purchase an annuity several years before they plan to retire. Doing so may help:

  • Build tax-deferred value over time
  • Add stability to a broader retirement strategy
  • Prepare for predictable income later

This approach is often appealing for people who want to reduce uncertainty as retirement gets closer, however, it depends on individual financial goals, liquidity needs, and time horizon.

Buying an Annuity Near or At Retirement

For many, the most common time to consider buying an annuity is shortly before or at retirement.

At this stage, priorities often shift from growing savings to:

  • Creating predictable income
  • Protecting principal
  • Reducing exposure to market volatility

An annuity may help support these goals depending on the type of annuity selected and its specific features and terms in the contract. 

Buying an Annuity After Retirement

Annuities can also be purchased after retirement has begun. Some retirees decide to add an annuity later to:Annuities can also be purchased after retirement has begun. Some retirees decide to add an annuity later to:

  • Supplement other income sources
  • Address longevity concerns
  • Adjust to changing expenses or lifestyle needs

This can be part of an ongoing retirement strategy, rather than a one-time decision. 

Factors That Can Influence Timing

Instead of focusing on age alone, consider these factors when evaluating when to buy an annuity:

Your Retirement Timeline

How close are you to needing income from your savings?

Your Income Needs

Do you want guaranteed income now, or are you planning for future income?

Your Comfort with Market Fluctuations

Are you looking for more predictability and protection?

Your Overall Retirement Strategy

How would an annuity complement other retirement savings or income sources such as Social Security, pensions, or investment accounts?

Why Timing Is Personal

The “best” time to buy an annuity is ultimately when it aligns with your retirement goals and financial priorities.

 Given individual circumstances vary, there is no universal recommendation. Careful review of product features, costs, risks, and limitations is important before purchasing.

Final Thoughts

If you’re asking when to buy an annuity, it usually means you’re thinking thoughtfully about retirement—and that’s a good thing.

Learning how annuities work, what features matter most to you, and how they can support long-term goals can help you decide whether—and when—an annuity may be appropriate f as part of your retirement strategy.

Before purchasing a fixed annuity, clients should consider their existing income sources, liquidity needs, time horizon, and overall financial objectives, and consult a licensed financial professional to determine whether it is appropriate for their individual circumstances.

If you’d like to continue learning about annuities and retirement planning, these Oceanview Life articles may be helpful:

Disclaimers

The Harbourview MYGA (Generic Policy Form ICC19 OLA SPDA) and Harbourview FIA (Generic Policy Form ICC19 OLA FIA) are single premium deferred annuities. May not be available in all states.  

OCEANVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.

Annuities issued by Oceanview Life and Annuity Company, 1331 17th Street, Suite 1050, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.

Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please review the contract for full details.  

A.M. Best Rating as of February 11, 2026, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.

This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such. 

Neither Oceanview Life and Annuity Company nor any of its representatives may provide tax or legal advice. 

Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.

The IRS may impose a penalty for withdrawals prior to age 59 ½.

Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.

Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated.  Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed. 

Funds allocated to an index do not directly participate or invest in the stock market or any index.