Fixed annuities are often marketed as retirement-safe solutions, promising stable income and protection from stock market volatility. They sound ideal, especially to older investors looking to reduce risk. But the fine print tells a different story.
Many fixed annuities come with long surrender periods, meaning if you need access to your money early, you’ll pay steep penalties. Some contracts lock you in for seven to ten years or more. Additionally, the guaranteed return is often barely above inflation, eroding your real purchasing power over time.
