You lose control over your lump sum. Once you buy an immediate annuity, that money is generally gone—you can't withdraw it for emergencies, and there is often nothing left for your heirs when you pass away. When It Generally Makes Sense
If market volatility keeps you up at night, an annuity acts as "personal insurance" against a market crash. Red Flags & Risks Should I buy an annuity or use drawdown? - The Times should i buy an annuity
The decision to buy an annuity is a "long story" because it essentially involves trading a large sum of liquid cash for a lifelong guarantee of income. It’s a move from to wealth distribution , and whether it’s right for you depends on your health, your need for certainty, and your willingness to pay for that peace of mind. The Core Trade-off You lose control over your lump sum
If you expect to live well into your 90s, an annuity protects you from the risk of running out of money in your final years. Red Flags & Risks Should I buy an annuity or use drawdown