Let's see why. Annuities An annuity is the way in which you convert the money you have built up into a regular income to see you through your retirement. The annuity pays you a fixed income until you die. The precise amount depends on how long they think you have left to live. Women, who live longer than men, receive less than men of the same age.
Older people receive more than younger people.
The amount you receive does not increase with inflation, unless you have agreed to accept a substantially reduced initial annuity income. Your spouse may get nothing when you die, unless, again, you have agreed to accept a substantially reduced initial annuity income. Finally, you and your spouse both die. When you and your spouse are both dead, the annuity company keeps the money. Your relatives or favourite charity get nothing.