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Planning for retirement today is a lot more complicated than it once was. With a lot longer, and with eating into people's savings at a time when , figuring out how to make your money last after you stop working is no small feat. That's why many retirees are now , which are financial products designed to provide a steady stream of income no matter how long you live, to fill in the gaps.

Annuities can play a key role in retirement planning by offering guaranteed payments that and other income sources. But deciding when to buy an annuity — and how (or whether) it fits into your overall plan — isn't always a straightforward process. Part of the issue is that there's a lot of advice circulating about retirement preparation, and that includes the so-called "age 75 rule," which offers guidance on to maximize payouts.

But what exactly is this rule, and is it grounded in financial wisdom, or is it just another retirement planning myth? Here's what the age of 75 rule really means — and what you should know about it.

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The "age 75 rule" isn't a formal regulation or even a financial industry standard. Rather, it's a commonly shared belief that annuity buyers should wait until age 75 to purchase, since at that age. Here's why people think this way:

But while there's truth in the idea that annuity payouts increase with age, that's not the full picture.

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The "age 75 rule" oversimplifies how annuities work and doesn't account for other important factors in retirement planning. Here's what to keep in mind before adhering to this rule:

Many retirees use annuities as a way to secure predictable income to cover essential expenses like housing, healthcare and groceries. If you wait until 75 to buy one, you might spend years drawing down other assets, which could or force you to sell investments during downturns. Buying earlier, on the other hand, could provide peace of mind and protect against outliving your savings.

While a 75-year-old gets higher monthly payments from an annuity, they also have fewer years left to collect those payments. If you purchase earlier, you lock in no matter how long you live. That can be especially valuable if you end up living well into your 90s or beyond.

Waiting too long could also mean missing your window to buy . While some annuities don't require medical underwriting, others do. So, buying one after you have a significant health issue in your 70s could limit your options or make certain products more expensive.

The truth is, there's no particular annuity purchasing age that works for everyone. The best time to purchase an annuity depends on your unique circumstances, including:

The so-called age 75 rule for annuities is more myth than hard-and-fast advice. While it's true that older annuity buyers often get higher monthly payments, waiting to purchase one isn't always the optimal choice. For many retirees, purchasing earlier can provide valuable peace of mind and ensure income when it's needed most. So, instead of focusing on an arbitrary age, consider your overall retirement plan, income needs and health when deciding if and when an annuity makes sense for you.