From withdrawals to exchanges, there are a few key ways you can access funds from an annuity. Rene Mansi/Getty Images

Annuities have become an increasingly popular retirement tool, with total annuity sales hitting $119.2 billion in the second quarter of 2025, an uptick of about 8% compared to Q2 2024, according to the latest data from LIMRA . That increase in sales was driven, at least in part, by more people turning to annuities to secure a guaranteed retirement income in today's uncertain economy. Unlike stocks or savings accounts, annuities provide structured payouts for life , which can make them attractive to those concerned about outliving their nest egg.

But while the security of predictable payments is a big selling point, annuities can also feel restrictive when you

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