Don T Buy Annuities -

In some flexible-premium contracts, every new contribution starts its own multi-year surrender clock, effectively keeping your capital illiquid indefinitely. 3. Inflation and Purchasing Power Risk

Once you fund an annuity, your money is often "locked away," making it difficult to respond to life's emergencies. don t buy annuities

Optional features like death benefits or inflation protection add further annual expenses, potentially eating into the very returns they are meant to protect. 2. The "Liquidity Trap" and Surrender Charges 5 Reasons Why People Hate Annuities - Trajan

The greatest threat to a fixed annuity is the gradual erosion of buying power over time. 5 Reasons Why People Hate Annuities - Trajan Wealth While marketed as "personal pensions

Variable annuities can carry annual fees exceeding 3%, including mortality and expense (M&E) risk charges, administrative fees, and management fees for underlying subaccounts.

Most contracts impose steep penalties—sometimes as high as 10% or more—if you withdraw funds during the first 6 to 10 years.

The case against annuities often centers on their high costs, lack of flexibility, and the risk that they may not keep pace with economic changes over a decades-long retirement. While marketed as "personal pensions," the trade-offs required to secure that guaranteed income can significantly erode your overall wealth. 1. Prohibitive Fees and Hidden Costs