Do you need an annuity?

Annuities aren't for everyone. If you aren't worried about running out of income, you may not need an annuity. "Bill Gates doesn't need an annuity," Updegrave says. If you have enough money from Social Security and other retirement assets, you may not need an annuity, either.

Do annuities work?

Annuities work for people who are looking for simple, fixed payments—and who don't mind the disadvantages, such as high fees. When considering an annuity, make sure to pay attention to all of the details in the contract. Evaluate all of the pros and the cons.

Should you put all your savings in an annuity?

DiGangi says don't put all your savings in an annuity, even if the current rates are tempting. “You really want to make sure your liquidity needs are covered outside of the annuity while having a bucket of other investments for growth — 20% to 30% of your savings is a guidepost for how much to put in annuities. 10.