Do annuities have disadvantages?

Still, annuities do have disadvantages, and if you’re thinking about buying an annuity, it’s important to know what the possible downsides are. There are several types of annuities, annuity issuers, and annuity products. Any annuity can be beneficial or not, depending on whether it matches your financial goals.

Why does my annuity become less valuable?

Your annuity can become less valuable (because it probably won’t pay out for as many years as you expected when you bought it) at the same time that you might wish you had your premium dollars back to pay for medical expenses.

Why are annuities considered poor investments?

Annuities are considered poor investments for many reasons. Depending on the annuity, these include a variety of high fees, with little to no interest earned, an inability to keep up with inflation, and limited liquidity. What Is Better Than an Annuity for Retirement?