Why Not To Buy An Annuity (2025)

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

: Adding "bells and whistles" like death benefits or guaranteed income cost extra, which quickly eats into your principal. why not to buy an annuity

: Sales agents may earn commissions ranging from 1% to 10% of your total investment. : Annuities, especially variable ones, often carry layers

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