Annuities work best for people who want to convert a portion of their savings into reliable retirement income and reduce the risk of outliving their assets, and who can tolerate limited liquidity on that slice of their portfolio. They are generally less suitable if you already have ample guaranteed income from a pension or Social Security, or if you anticipate needing flexible access to most of your capital. The right question is not “are annuities good or bad?” but “does a guaranteed income stream fit my retirement plan?”