If you're exploring ways to guarantee income in retirement, you've probably come across annuities. What you might not know is that many people are buying them today without ever walking into an adviser's office.
Thanks to a rise in virtual tools, annuity purchases that once required thick paper contracts and in-person meetings can now be completed online, sometimes in under an hour.
But just because it's fast and convenient doesn't mean it's simple.
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Here's what to know before you click "Buy Now" on a product that could affect the rest of your life.
The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.
Why people are buying annuities online
Retirement-age consumers are increasingly comfortable with making financial decisions virtually. That trend has opened the door to online annuity quotes, illustrations and purchases, delivered through secure digital platforms, video calls and apps.
Some of the benefits of buying annuities virtually include:
- Convenience. There's no need to schedule in-person meetings or deal with paper forms. You can review options and apply from home
- Speed. With apps and e-signatures, it's possible to go from interest to issued policy within days
- Education-first experiences. Many advisers use screen sharing, retirement income calculators and interactive tools to walk you through how each annuity works before you commit
In short, buying an annuity online isn't just about skipping the office visit. It's about making a complex process more transparent and personalized.
What to look for in a virtual annuity experience
A good digital experience should feel thorough, not rushed. Just because something's virtual doesn't mean it should be vague. Here are four signs you're working with a professional, not a product pusher:
1. They start with education, not a sales pitch
A trustworthy adviser will walk you through the basics of how annuities work, the pros and cons, and when they're most useful in retirement.
Look for someone who screens to make sure an annuity is appropriate for your situation, not someone who jumps straight to a specific product.
2. You get a custom illustration
You should receive a detailed breakdown of how the annuity would perform based on your age, investment amount, timeline and goals.
For example, how much guaranteed income would you receive starting at age 67 if you invested $100,000 today? Can you add an income rider? What are the fees?
3. You're encouraged to ask questions (and sleep on it)
A red flag in virtual sales is pressure.
Annuities are long-term contracts. It's reasonable (and wise) to take a few days to think through your options, compare illustrations and talk to a family member or certified public accountant (CPA).
4. The application process is secure and transparent
Most virtual annuity applications happen through encrypted portals and require identity verification.
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If you're being asked to send sensitive documents over unsecured email or fill out handwritten forms, consider looking elsewhere.
Common types of annuities you can buy virtually
While virtually all types of annuities can now be sold online, these are some of the most common in virtual retirement income strategies:
Fixed indexed annuities offer growth potential linked to a market index, with downside protection. Popular for clients who want income and principal safety.
Immediate annuities convert a lump sum into guaranteed income right away — ideal for retirees needing income now.
Deferred income annuities lock in future income starting several years from now.
Multi-year guaranteed annuities (MYGAs) function like CDs with higher fixed interest rates over a set term, often used for short-term stability.
Each type comes with different fees, benefits and liquidity rules, so you'll want to see side-by-side comparisons.
Questions to ask before you buy
Before finalizing a virtual annuity purchase, make sure you get clear answers to these questions:
- How is the adviser compensated? Commission, flat fee or both?
- Are there surrender charges if you need to access your money early?
- How is income calculated, and are there guarantees regardless of market performance?
- What riders are included or optional (e.g., income, long-term care)?
- What happens to the money when you pass away?
If the adviser can't answer these questions (or dodges them), that's your cue to find someone else.
The bottom line
Annuities can be a powerful retirement income tool, and virtual platforms have made them more accessible than ever. But easy doesn't mean effortless. Take time to learn the basics, review multiple options and partner with someone who puts education first, not a quick sale.
A good virtual annuity experience should make you feel more informed, not more confused. With the right guidance, you can lock in income for life without ever leaving your couch.
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