August 12, 2025
Most people who own annuities are middle class. Seventy percent of annuity owners had total annual household incomes under $100,000 with a median annual household income of $79,000, according to The Survey of Owners of Individual Annuity Contracts, conducted by Gallup in 2022, the most recent year available.
While many annuity owners are solidly middle class, high-net worth people buy annuities, too. Mostly, they do so for the same reasons anyone else would: Guaranteed income for life, protection from market volatility and peace of mind in retirement.
With an annuity, you hand over a lump sum or series of payments to an insurance company, and in exchange, the insurer promises a series of payments to you either now or in the future. They’re often described as self-funded pensions.