Annuities are looking good right now. So why aren’t people buying them?

Brett Arends's ROI

Don’t bemoan the loss of traditional pensions. Create one yourself.

Last Updated: June 17, 2025 at 6:58 p.m. ET
First Published: June 17, 2025 at 1:58 p.m. ET

It’s funny that so many people bemoan the loss of old-fashioned final-salary pension plans. They still exist and are arguably better than ever, yet almost nobody wants them.

Income or life annuities are straightforward insurance products that let you buy a guaranteed income for life, pretty much like a traditional pension. Total sales last year came to just $18.6 billion, a tiny fraction of the $430 billion overall annuity market.