Ask Jean: "Who Do Fixed Annuities Make Sense For?" (2026)

If ask jean who fixed is on your radar, this short guide cuts through the noise. Here is what is worth knowing, and how to put it to work today.

Key Takeaways

• Do fixed annuities make sense for a Gen X'er concerned about financial peace of mind in retirement?
• One reader asks HerMoney CEO Jean Chatzky.
• Q: Today’s question comes from Michele.

Do fixed annuities make sense for a Gen X'er concerned about financial peace of mind in retirement? One reader asks HerMoney CEO Jean Chatzky.

Q: Today’s question comes from Michele. She writes: “Who do fixed annuities make sense for? I think one will ease my mind about being prepared and having a steady income flow when I retire. For background, I’m single, have no plans to marry, and am a Gen X’er.”

One way people find that peace? Annuities. Think of them as a “DIY pension.” Pensions used to be a big part of retirement, but today, few of us have one (aside from Social Security). An annuity guarantees your money lasts as long as you do - a reassurance numerous retirees crave.

You can purchase an annuity in a lump sum or via monthly payments, but once it’s purchased, withdrawing your cash typically comes with penalties. That makes them excellent for guaranteed income, but not ideal if you want full liquidity. (Which is exactly why we recommend only annuitizing a portion of your savings.)

When it comes to annuities, fixed annuities are the simplest type , you hand the insurance company a sum of money and, in exchange, they provide you with a regular paycheck. Unlike other annuities, fixed annuities offer a guaranteed minimum payout, as well as a fixed interest rate.

As you weigh your options, Jordan Gilberti, CFP and founder of Sage Wealth Group, says there are a couple of key things to consider. “The key question to ask yourself is, ‘Is this the absolute best use of my dollars and are there alternatives I haven’t explored?’” he shares.

Gilberti also says it’s essential to consider the objectives of the agent selling the annuity. “In most cases, they are paid a commission by the insurance company for selling their products,” he adds. “Thus, it may not be in their best interest to offer you alternative investment options.” In other words, it’s up to you to do your homework.

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Final Thoughts

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Originally published at savingswitch.com.