Annuities in Retirement: 5 Things the Salesperson Won’t Tell You

Many annuities offer guaranteed income, but retirees should carefully examine fees, surrender charges, commissions, and liquidity restrictions before signing a contract. Shutterstock

Annuities are often marketed as the answer to one of retirement’s biggest fears: running out of money. The pitch can be incredibly appealing, especially for retirees seeking a predictable income and protection from market volatility. Insurance agents and financial professionals frequently highlight guaranteed payments, tax-deferred growth, and financial security. While annuities can be valuable tools in certain situations, they are not perfect solutions for every retiree. Before signing a contract that could affect your finances for years, here are five things you need to know.

1. Your Money May Be Locked Up Longer Than You Expect