Our parents had pensions and knew exactly what they’d get every month in retirement, no stress, just a check that showed up like clockwork.
Annuities are basically the DIY version—you trade a chunk of savings for guaranteed income that can’t run out, even if you live to 100.
Your 401(k) is more like that box of cassette tapes at a garage sale: tons of potential, but you never know what you’re going to get, especially if the market tanks right when you retire.
The smart move might be splitting the difference:
- enough annuity income to cover basic bills like that pension your company never gave you and
- keep some 401(k) money for growth and emergencies
Bottom line: Gen X watched pensions disappear and markets crash twice—wanting guaranteed income isn’t paranoid, it’s pattern recognition.
