Annuities are guaranteed paychecks for life. Social Security and pensions are both examples of lifetime income annuities. Lifetime income annuities have higher payout rates based on age because of mortality credits (longevity credits), and are structured to satisfy the needs of aging clients. You actually get paid more for living longer. Once someone retires, there is no more 9-5, and every day is an opportunity to have fun. It’s important to examine what your basic living expenses are, and then determine how much money you need to allot for a “playcheck” to cover the fun stuff. Annuities overcome two big obstacles retirees face: taking out too much money and running out, or taking out too little and forfeiting the retirement & life experiences they could have had.