Annuities are often marketed as safe retirement solutions, but the reality is they come with significant drawbacks. High commissions—ranging from 5% to 10%—incentivize aggressive sales tactics. Ongoing fees, including mortality and expense charges, investment management fees, and administrative costs, can total 2% to 3% annually, eroding your returns. Additionally, surrender charges penalize early withdrawals, limiting your financial flexibility. While annuities promise guaranteed income, these benefits often come at the expense of high costs and reduced control over your money.
