The annuity rebrand: How self-directed investors are shaping the future of retirement income

The annuity rebrand: How self-directed investors are shaping the future of retirement income

Over the past several decades, society has undergone a notable cultural shift — one marked by the transition from full-service gas stations to self-service pumps. This evolution reflects a broader movement toward autonomy that now permeates daily life, from self-checkout to investing for retirement.

Research conducted in January 2025 by financial services company Gainbridge highlights how this shift is reshaping the financial landscape, particularly among self-directed investors. The findings reveal a growing segment of investors who prioritize autonomy, transparency, and digital empowerment — values that are increasingly influencing how individuals plan for retirement.

At the center of this transformation is an unlikely leader: the annuity. Once considered complex and advisor-dependent, annuities now serve as flexible tools that enable digitally savvy consumers to shape their own retirement strategies in an uncertain world.

This evolution doesn’t eliminate advisors — it redefines their role. The focus is shifting toward expanding access, fostering confidence, and giving consumers the tools to make informed financial decisions. Some annuity providers are moving away from commission-driven models and toward empowering users to take a hands-on approach to retirement income planning.

And the movement is gaining momentum. The researchers found 42% of annuity buyers now prefer to manage their finances independently. Among adults under 40, the number of buyers who prefer self-education over working with an advisor jumps to 51%. These figures highlight the growing demand for self-serve options.

As digitally savvy investors accumulate wealth and influence, companies are stepping in to meet their expectations. By offering transparent, commission-free products and digital-first solutions, these platforms are closing the knowledge gap and redefining annuities for the modern investor.

The future of annuities isn’t about complexity — it's about clarity, control, and confidence.

From advice to autonomy: A mindset shift in retirement planning

Retirement planning once relied heavily on advisors who helped you work through jargon-laden documents and contracts. This new financial mindset remolds that older model in favor of autonomy over delegation and curiosity over deference.

With the rise of the internet and AI-powered search engines, investors of all ages are bypassing “high-fee experts.” Instead, they want to research and manage their own portfolios and seek support when they need it. This blend of autonomy and support has led to a new era of economic empowerment and democratized financial knowledge.

This transformation is both cultural and systemic. The 2008 financial crisis shaped the worldview of Millennials and Gen Z, making them more skeptical of institutions and traditional gatekeepers.

The internet has provided resources to help enable investors of any age to break free from old investment models and confidently take control of their finances.

Investors can now learn a new skill on YouTube and manage investments through apps like Robinhood or Wealthfront. Podcasts like “The Money Guy Show” and “ChooseFi” aim to simplify complex topics into a digestible format.

On the institutional side, digital platforms with no commissions have emerged to support financial literacy and appeal to DIY investors. With all these resources just a click away, it's no surprise that 36% of Americans say they prefer self-education over working with an advisor — rising to 51% among those under 40, according to Gainbridge’s research.

This shift isn’t driven by overconfidence; it reflects a desire for ownership. Self-directed investors tend to opt for a proactive approach, aligning their investing decisions with personal values and long-term goals.

Advisors aren’t obsolete — they’re evolving. Modern investors want less sales pitch and more partnership. They want to understand, customize, and integrate financial products into a broader strategy aligned with their values.

Here’s an example of a DIY investor in today’s landscape: A 45-year-old tech professional builds their stock portfolio using low-cost trading platforms and diversified exchange-traded funds. Before making a financial decision, they conduct their own research. This includes watching YouTube videos to understand investing fundamentals, reading articles from trusted financial websites, and listening to podcasts. This self-directed, education-first approach is rapidly becoming the norm, reshaping how annuities and other financial products are designed and marketed.

Providers that embrace this shift by offering clear information, flexible tools, and direct access stand poised to gain the trust of investors who value empowerment over deference.

Annuities as tools, not products

Historically, annuities were viewed as complicated financial products for securing retirement income. But today’s self-directed investors often see annuities as one component of a diversified strategy — not a one-size-fits-all solution.

Generous employer-funded pension plans are largely an artifact of a bygone age. Some modern pre-retirees are adopting multi-pronged approaches to saving for retirement. This includes pairing annuities with individual retirement accounts, certificates of deposit (CDs), and other passive income streams. Notably, Gainbridge’s research found 42% of annuity buyers say they manage their finances independently — 10% higher than CD buyers.

As retirement approaches, priorities tend to shift from wealth accumulation to income preservation among pre-retirees. Markets can be volatile — often influenced by factors like inflation spikes, geopolitical tensions, and unpredictable equity returns — some investors are looking to prioritize stability over speculative gains.

Among the various financial products, annuities are a popular choice, with 38% of annuity buyers saying they are interested in guaranteed income as a hedge against volatility. This can reflect the role of annuities as stabilizers in risk-heavy portfolios, offering predictable income alongside more volatile assets.

To meet the expectations of the DIY crowd, providers offer customizable annuities with flexible terms, rates, and structures. These products contrast sharply with the rigid long-term commitments of the past. Whether it's a fixed annuity for predictable interest or an indexed annuity with downside protection, today’s offerings are designed to help align with individual goals.

Here’s an example of a modern investor's approach to navigating the current landscape: A 58-year-old investor allocates 60% of their portfolio to equities to pursue growth. Another 20% is directed toward bonds to provide safety. The remaining 20% is allocated to a fixed annuity to secure guaranteed income. This diversified strategy can help ensure a steady cash flow regardless of market conditions.

With memories of the dot-com crash and the global financial crisis of 2008 still on their minds, younger investors may be a little more cautious. Some are prioritizing diversification and preparedness in an unpredictable world.

Trust, transparency, and the modern consumer

Legacy models built on trusted intermediaries and complex fee structures have become outdated. Today’s investors are seeking transparent terms, direct access, and education-first brands that foster a broader sense of trust in a skeptical marketplace.

Decades of opaque fee structures, hidden commissions, and advisor-driven sales tactics have diminished confidence in traditional financial models. While some firms justify high fees due to providing direct access to an advisor, Gainbridge found that 67% of survey respondents say they value transparency over personal interaction when choosing a product. Additionally, 30% cite conflicts of interest as a barrier to trusting financial advisors.

This points to investor preference for products that allow user control and minimize gatekeeper dependency. Today’s investors want conflict-free, self-serve financial tools from providers who prioritize clarity and education.

Financial service providers are responding by adjusting the way financial products — including annuities — are designed and marketed. Gone are the glossy brochures and charismatic advisors. Starting to pop up in their place are intuitive, user-friendly interfaces where answers are accessible and clear.

Direct-to-consumer (DTC) annuity providers are meeting this demand. Their digital-first platforms offer transparent pricing, commission-free products, and educational resources that help to build user confidence. There’s also dedicated support for those who still prefer some level of human engagement in the process.

What self-directed consumers value most

The criteria modern self-directed consumers prioritize when evaluating retirement options have evolved significantly over the past several decades. Today’s investors seek solutions that meet both functional and emotional needs. Here are their top five preferences.

Transparency

Clear fees and jargon-free terms are non-negotiable with today’s investors. They expect full visibility into what they’re signing up for — with no hidden costs or fine-print surprises. For example, a hidden 2% commission on an annuity would prompt investors to look elsewhere.

Control over terms

Flexibility in choosing rates, lock-in periods, and product structures is important. Customization helps to foster ownership, allowing investors to tailor investment options to fit their specific goals — whether it's a short-term fixed annuity or a longer-term indexed option.

Digital user experience

Raised in a digital environment, these consumers expect seamless applications, intuitive dashboards, and real-time updates. Clunky interfaces or outdated technology are immediate deterrents. Speed is also essential. Data presented in a 2017 study by Think with Google found the bounce rate jumps to 32% if it takes more than three seconds for the page to load on mobile. The need to fill out lengthy paperwork can also be a deal breaker, so the application process needs to be straightforward without excessive or unnecessary details.

Educational resources

Access to easy-to-understand content that helps inform and empower can give these investors the confidence needed to make decisions. Whether through videos, blog posts, or interactive tools, providing educational resources is a cornerstone of establishing trust with self-directed consumers. Importantly, these materials must go beyond surface-level explanations — offering guidance that helps investors evaluate trade-offs and make choices aligned with their long-term goals.

Openness to innovation

Do-it-yourself investors tend to be curious and forward-thinking. Notably, Gainbridge found 55% of annuity buyers say they’re “actively looking for new ways to invest,” indicating openness to innovation. This underscores the need for tech-forward investing models on the cutting edge of development.

The digital differentiators

As the financial landscape evolves, digital-first, direct-to-consumer (DTC) annuity models are setting a new standard. Instead of relying on advisors and complicated contracts, DTC providers leverage technology, transparent pricing, and educational content to help foster trust and drive adoption. With efficiency and autonomy among the top priorities for self-directed investors, this approach delivers both.

Digital-first DTC providers have responded to investor feedback, designing platforms that prioritize intuitive UX and mobile-friendly interfaces. These tools help users to independently purchase and manage annuities. Educational resources — including guides, FAQs, and self-service tools like income calculators — help demystify annuities. Many platforms also offer explainer videos and self-service tools that provide actionable insights.

This focus on technology and education creates a virtuous cycle where informed investors feel confident, encouraging deeper engagement. This investing model is gaining traction, with 29% of consumers saying they are open to purchasing financial products online, up from 17% in just two years.

What’s next: The opportunity ahead for DTC providers

Change can be challenging, but the rise of self-directed investors presents a significant opportunity for DTC annuity providers willing to adapt. As expectations become more defined, platforms that prioritize content, user experience (UX), and transparency will typically appeal to this growing demographic.

The market is primed for disruption. Notably, 61% of consumers surveyed by Gainbridge say they’re more likely to purchase from a financial company that educates them, underscoring the importance of trust-building through knowledge. That means content and UX are becoming increasingly important, and providers that inform and empower can earn long-lasting brand loyalty.

This story was produced by Gainbridge and reviewed and distributed by Stacker.