Start with the expenses that do not stop
Housing, utilities, food, insurance, transportation, and healthcare can continue regardless of what markets are doing. Some retirees begin by estimating these essential monthly expenses and comparing them with dependable income sources such as Social Security or a pension.
Look at the income gap
If dependable income does not cover essential expenses, an annuity may be one way to evaluate filling part of the gap. The purpose is not necessarily to place all retirement savings in one product. It is to decide whether converting a portion into contractual income would make the plan easier to manage.
Keep flexibility in the plan
Money committed to an income annuity may have limited liquidity. Other savings may still be needed for emergencies, home repairs, healthcare costs, travel, and expenses that change over time.
Decide when income should begin
An immediate annuity may begin payments soon. A deferred income annuity can schedule payments for later. Other annuities may offer optional income benefits with different rules and costs.
Compare more than the payment
Ask what happens at death, whether income covers one life or two, whether payments can adjust, how insurer strength is evaluated, and what access remains after the contract is issued.
A licensed professional can help estimate the gap, compare income approaches, and show how an annuity might fit alongside—not automatically replace—the rest of your retirement resources.