Annuities have one substantial advantage over a strategy of investing your retirement nest egg yourself. The annuity guarantees that you will not outlive your money. If you are blessed with the good health to live well into your nineties, it is the insurance company that takes the risk that it has paid out to you far more than your original principal plus its investment earnings. Risk-averse investors should certainly consider putting some or even all of their accumulated savings into an annuity contract upon retirement.
