From retirementessentials.com.au: Annuities provide guaranteed lifetime income for retirees but have low uptake in Australia, with only 3.5% of pension assets in annuities compared to 84% in account-based pensions.

Factors such as high costs, lack of flexibility, and the complexity of Centrelink assessments contribute to this reluctance.

Considering the impact on Age Pension eligibility and personal financial priorities, retirees must weigh the security of annuities against the flexibility of ABPs.