As retirement planning evolves in 2025, many individuals are reconsidering traditional tools like the life insurance annuity . Annuities promise guaranteed income for life or for a fixed period, making them attractive for retirees seeking stability. However, while they offer predictability, annuities also come with limitations that buyers must understand before committing long-term funds. Deciding whether they are a smart retirement choice or a potential trap depends on personal financial goals, inflation expectations and liquidity needs. Why annuities are gaining attention With life expectancy increasing and savings often inadequate for extended retirement years, the assurance of regular income is appealing. A life insurance annuity provides a steady payout that helps cover essentials such as healthcare, rent and household expenses. For risk-averse retirees, this eliminates the uncertainty of market-linked investments. The reliability of fixed returns is a major reason why annu...