Why Not To Buy An Annuity Apr 2026

: Annuities, especially variable ones, often carry layers of fees—including management, administrative, and "mortality and expense" charges—that can exceed 3% annually.

This potential conflict of interest is why experts like those at Investopedia suggest consulting a fiduciary advisor instead. Annuity Pitfalls Overview - Gainbridge why not to buy an annuity

While annuities can provide a "personal pension," they are often criticized for their high costs and lack of flexibility compared to other retirement vehicles. : Annuities, especially variable ones, often carry layers

: Adding "bells and whistles" like death benefits or guaranteed income cost extra, which quickly eats into your principal. especially variable ones

: Sales agents may earn commissions ranging from 1% to 10% of your total investment.