The DTC annuity surge is really a demand for clarity
Direct-to-consumer annuities are having a moment, and the reasons have less to do with chasing yield and more to do with something retirees crave: clarity. For years, annuities have been both useful and misunderstood, praised for lifetime income potential and criticized for complexity. Now digital distribution is changing the shopping experience and, in the process, reshaping what consumers expect from retirement products.
Tim Cowart, Chief Financial Officer at Ubiquity Retirement + Savings – a nationally recognized innovator in small business retirement solutions, says the momentum behind direct-to-consumer platforms reflects a broader demand for simpler planning and more visible outcomes.
“People are seeking simpler, faster, and more transparent ways to plan for retirement and maximize their financial security.”
He adds that the move toward direct access is also about how annuities fit into a modern retirement mix.
“The growing shift to direct-to-consumer platforms reflects these desires, which offers easier access to products like annuities that work together in the broader retirement toolkit.”
That framing is important. Annuities are rarely the whole solution. For many households, they are a component designed to solve a specific problem: predictable income. Used well, guaranteed income can reduce the pressure on investment accounts to do too much heavy lifting, especially in the early years of retirement, when the margin for error is thinner.
Still, buying direct does not automatically mean buying smart. Cowart underscores that convenience is only one variable, and guidance and education can materially change outcomes.
“DTC alone offers convenience, however, working with a knowledgeable advisor, or a provider who prioritizes education and clarity, can make a significant difference.”
The bigger point, he says, is that financial security is created through the structure of the plan, not the simplicity of a checkout experience.
“Achieving financial security isn’t just about choosing a product – it’s about choosing the best route to create a tailored, diversified strategy that helps you reach your long-term goals.”
The real risk retirees are trying to hedge: outliving their savings
Longer lives have turned retirement into a multi-decade funding challenge. Markets will fluctuate, inflation will compound, healthcare costs can surprise, and spending patterns rarely stay linear. That is why the conversation keeps circling back to longevity risk.
Cowart puts it plainly.
“As people live longer, the need for a retirement strategy that goes beyond a few years and supports income for decades remains essential.”
So what actually helps retirees avoid running out of money? The answer is not one magic product. It is a set of practical decisions that make a plan more durable, especially as life changes.
Cowart points first to an income approach that is disciplined, realistic, and adaptable.
“One of the smartest steps retirees can take is to create a sustainable withdrawal plan that grows and adapts as life changes.”
And he emphasizes that the process works best when it is built as a roadmap, not a one-time decision.
“It’s about developing a roadmap in collaboration with a financial advisor that supports your goals as you navigate every stage of your financial journey.”
The details matter too, because small leaks can become big problems over time. Cowart highlights a set of levers retirees can control.
“In addition to saving, this means setting realistic withdrawal goals, reducing unnecessary fees, building in flexibility, and diversifying income sources.”
Put together, those steps can extend the life of a retirement plan and reduce the anxiety that often shadows the transition out of work.
“Collectively, these steps can help make retirement savings last and give individuals greater peace of mind along the way.”
The takeaway for retirees
The rise of direct-to-consumer annuities serves as a signal that retirees want products that are easier to understand and strategies that feel more tailored to real life. DTC can offer speed and access, but the lasting value comes from pairing any product choice with a plan built for decades, not just the first few years.
