Debunking Annuity Myths

| March 31, 2021

Don't overlook the benefits that annuities provide during your retirement planning years. Yes, some myths make them appear to be a lousy choice, but there are reasons to trust in financial insight rather than the Google results on the Internet. Here’s some reasoning behind why financial professionals want you to consider an annuity:

  1. Don’t wait until you retire. If your contributions to an employer-sponsored savings plan or your IRA contributions are maxed out, a deferred annuity can help build wealth. It offers a tax-efficient vehicle that turns into income later in life.
  2. You can access your money. The unexpected is what life is all about, and it’s important to access your money when you need it—without hassle. So, it’s good to know that most annuities allow for withdrawals up to a certain percentage each year without charging an early withdrawal fee.
  3. Age doesn’t play a factor. Guaranteed income for life is hard to argue, but for many, a pension or Social Security payment isn’t enough to maintain a retirement lifestyle. An annuity is one of the few options that offer a guarantee that won’t run out before you do.
  4. You can allocate a beneficiary. Built-in death benefit agreements come with or can be added to many annuities. With this rider, the remaining account value (or guaranteed minimum surrender value) is paid out to your designated beneficiary.
  5. Trust the consumer protection. Annuity claims are backed by the claims-paying ability of any issuing insurance company. Further, if that company fails, state guaranty systems will kick in to protect you, the consumer.

Annuities can be integral to a comprehensive retirement plan. Don’t let misconceptions be missed opportunities. We’re here to help break down and simplify topics like this. Reach out to our team and let us help you determine if an annuity is a suitable solution for your unique situation.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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