Is your advisor scaring you into buying an annuity after saving for retirement? Here’s where you should tell them to go

Moneywise and Yahoo Finance LLC whitethorn gain committee oregon gross done links successful the contented below.

"I would dice and spell to hellhole earlier I would merchantability an annuity," billionaire Ken Fisher said successful a 2018 advertisement (1) for his concern firm, Fisher Investments. In an op-ed written for Forbes a fewer years earlier, helium called the fiscal instruments "scumbag products." (2)

So if idiosyncratic successful a bully suit is scaring you into adding annuities to your status successful 2026, should you nonstop them successful the aforesaid direction?

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Well, earlier you bash that, it's worthy knowing what annuities are designed for, wherefore they get specified a atrocious rap and whether they're a bully acceptable for your idiosyncratic finances.

Understanding annuities (and wherefore they're often pushed)

Annuities are designed to offload hazard for anxious investors.

At a basal level, these are contracts that investors motion with security companies to fastener successful regular income payments successful retirement, according to US Bank (3). And that marketplace has grown rapidly.

In 2025, annuity income totaled $460 cardinal — astir treble the 2020 full and marking the 4th consecutive record-breaking year, according to LIMRA (4) and Plan Advisor (5). Much of this maturation seems to beryllium driven by the request for bid of mind.

A whopping 97% of annuity owners said they interest little astir moving retired of wealth successful retirement, portion 88% said it has eased concerns astir a banal marketplace downturn, according to Bloomberg (6).

However, the downsides of these products are often overlooked.

According to Fisher Investments, annuities could person excessively precocious fees, restrictive lock-up terms, precocious surrender charges and misleading interpretations of "guaranteed returns."

The steadfast besides highlights imaginable conflicts of interest.

"Annuity providers often reward their salespeople with ample commissions that are built into the policy," says the Fisher report.

Simply put, annuities could beryllium utile for immoderate people, but you request to beryllium vigilant to marque definite they're the close acceptable for you. This is particularly existent if your savings transcend $2 million.