This is one of the most common questions about annuities, and the honest answer is: it depends on which type of annuity and payout option you choose.

Lifetime income options: no, by design

If you choose a lifetime payout option (single life or joint life), the insurance company guarantees payments for as long as you (or you and your spouse) are alive — even if your account balance reaches zero. This is the core feature that distinguishes annuities from most other retirement savings vehicles: the risk of outliving your money shifts from you to the insurance company.

Other payout options: yes, it’s possible

Not every annuity payout is structured for life. If you choose a period-certain payout (say, income guaranteed for 10 or 20 years) or simply take withdrawals from a deferred annuity without ever “annuitizing” it into a lifetime income stream, it’s possible to exhaust the account value. This isn’t a flaw in the product — it’s simply a different choice than a lifetime payout, often made because it offers more flexibility or a higher payment during the specified period.

Income riders as a middle ground

Many deferred annuities offer an optional guaranteed lifetime withdrawal benefit (income rider) for an additional fee. This lets you take guaranteed lifetime withdrawals from the contract without formally annuitizing it, often preserving more flexibility (like access to remaining account value or a death benefit for heirs) than a traditional lifetime annuitization.

The bottom line: if guaranteed lifetime income is your priority, the product and payout option need to be selected specifically for that purpose — it isn’t automatic with every annuity.

This article is educational and general in nature. It isn’t personalized financial advice. All guarantees are subject to the claims-paying ability of the issuing insurance company.