Annuities are gaining popularity as a retirement income solution, especially after the SECURE Act 2.0 made it easier to include them in 401(k) plans. A LIMRA survey showed that 70% of non-retired workers would likely choose an in-plan annuity, attracted by the promise of guaranteed lifetime income. 

Reflecting this demand, annuity sales hit a record $432.4 billion in 2024, marking the third consecutive year of growth. Annuities can be a good choice if you're worried about running out of money, seek better returns than bank CDs, or have maxed out other retirement accounts. 

Immediate and deferred annuities offer different ways to secure lifetime income, while fixed annuities provide guaranteed growth with higher yields than many traditional savings options. 

Finsum: Ultimately, whether an annuity fits your needs depends on your financial goals, risk tolerance, and desire for income stability in retirement.