Final answer:
The characteristic not associated with an annuity is 'Annuities are concerned with how soon one will die'. Annuities' main purpose is to provide income for life, preventing the risk of outliving one's savings, and they often come with fixed payments, which can be safer but possibly lower in total income than more variable investments. The answer is option C.
Step-by-step explanation:
Among the characteristics of an annuity, 'Annuities are concerned with how soon one will die' is not characteristic of an annuity. An annuity is a financial product that is designed to offer a steady income stream for some time, often used for retirement.
Annuities are intended to protect against the risk of living too long, ensuring that retirees do not outlive their savings. They are structured to lessen the depletion of the retirement fund, by offering a fixed sum of money paid each year, which can be purchased in a lump sum or over time.
When considering retirement savings, individuals can choose between various options such as stocks, bonds, or annuities. Each comes with a different level of risk and potential return. Annuities offer fixed payments and are generally considered safer investments compared to stocks and bonds, whose returns can be highly variable. However, it is important to note that defined benefit plans, like pensions, can be eroded by inflation over time, unlike some annuities which may include inflation protection or adjustments.