Joseph Patrick Roop is a Charlotte-based financial planning executive and the founder and president of Belmont Capital Advisors. With a career spanning more than three decades, Joseph Patrick Roop works closely with high-net-worth individuals on retirement income planning, tax-efficient strategies, and portfolio construction that balances growth with protection. His approach integrates multiple financial tools, including stocks, bonds, mutual funds, annuities, and insurance solutions, with a focus on building sustainable income streams for retirement.
In addition to his advisory work, Joseph Patrick Roop hosts the weekly television and radio program Retire(meant) for Living, where he discusses practical financial topics and retirement planning considerations with a broad audience. His professional background includes roles with firms such as Prudential, MassMutual, Legg Mason, Banc of America Investment Services, and Wells Fargo Advisors. Through Belmont Capital Advisors, he continues to guide clients as they evaluate timing decisions, such as when an annuity may best support long-term financial goals.
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The Best Age to Buy an Annuity for Long-Term Retirement Income
Financial security and predictability in retirement drive most Americans to buy annuities. Beyond basic security, some buyers seek a guaranteed paycheck for life (no matter how long they live), tax-deferred growth, and unlimited retirement contributions. Age affects when and how much buyers benefit from annuities.
The “best” age to buy annuities creates trade-offs that vary from person to person. On one side, some buyers reason that by purchasing early, they allow their money to grow over time and lock in guarantees that protect savings from market changes. But starting too soon also means tying up funds a person might need for other goals or uses that could yield higher payouts. Those who propose waiting argue that it leads to higher disbursements since insurers expect to only pay out for fewer years. However, the risk is that buyers miss out on steady income or face market downturns that erode the value of their savings.
Some financial experts view the mid-40s as the optimal time to buy annuities because this age balances the time to grow with the purchase cost. At 45, buyers have 15 to 20 years before retiring, which presents an opportunity to benefit from the compounding effect. Deferred annuities compound tax-free during this period and create larger guaranteed income. Buying earlier can also make certain contracts cheaper because the insurer expects the person to hold their money longer. As such, the provider has a longer time to invest the money.
People in their mid-40s also have time to use growth-focused annuity options. These products link to stock market performance but protect the original investment from market losses. The extra time allows individuals to make annuities part of their complete investment plan. They can move some bond or stock money into annuities to spread risk and protect savings.
Another group of financial experts views the mid-60s as the optimal time to make a purchase. People at this stage are close to retirement and have а much clearer picture of their finances, needs, and income sources. This clarity enables them to choose the right annuity type and determine how much guaranteed income they need. At 65, payout rates run higher than at younger ages. Individuals also start receiving payments immediately, which helps cover expenses before Social Security or pension benefits take effect.
Buying at 65 also comes with possible downsides. Since the annuities have less time to grow, buyers miss out on tax-deferred compounding benefits that they would have gotten from earlier purchases. Waiting until 65 also exposes money to interest rate changes, market swings, and other risks before retirement. The mid-60s may also be potentially too late for protection if a major market crash/economic downturn happens near retirement and reduces available funds.
To determine the optimal time for annuity purchase, а person should consider how their age interacts with their personal circumstances. Financial goals and strategy matter most. Buyers should determine what they want the annuity to accomplish. Do they want to cover expenses, protect savings, or supplement other income sources? Health and life span expectations also guide timing decisions. Those who expect to live longer, although not guaranteed, can purchase annuities early to secure lifetime income guarantees. Those with health issues or with potentially shorter life spans due to chronic or terminal illness can benefit from higher payouts associated with later purchases.
Access to money creates another consideration. Annuities lock funds away for long periods, so early purchases can limit emergency access. People should have sufficient liquid savings before committing money to annuities. For those with a high-risk tolerance, buying early may be a more suitable option as it allows more time to recover from market drops and volatility. Income needs also shape decisions. People who need income immediately at retirement can purchase immediate annuities later in life. Those with time can choose deferred annuities early in life to allow for growth and accumulation.
About Joseph Patrick Roop
Joseph Patrick Roop is the founder and president of Belmont Capital Advisors and a financial planning executive based in the Charlotte area. With more than 30 years of experience in financial services, he advises clients on retirement planning, income strategies, tax-efficient investing, and annuities. He also hosts the weekly program Retire(meant) for Living, where he discusses retirement and wealth planning topics for a broad audience.
