Texas Life Agent Practice Exam

A customer seeking retirement income at age 65 would typically not purchase an immediate annuity because immediate annuities are designed for individuals who want to start receiving income payments immediately after making a lump-sum payment. They are ideal for those who are already in or very close to retirement and need funds right away.

In contrast, a deferred annuity allows individuals to accumulate savings until they choose to convert it to a stream of income in the future, which is more appropriate for someone planning for retirement income several years before reaching retirement age. A variable annuity can provide retirement income through investments that can grow over time, offering the potential for higher returns that a retiring individual might benefit from. A fixed annuity also provides income typically starting at a future date, allowing for a more stable and predictable retirement income plan.

Thus, among the options, the immediate annuity does not align with the goal of a customer who is planning for retirement at age 65, as they would not require immediate income but rather income that begins later.