If you own an annuity, there's a good chance you were told it was a safe, reliable way to protect your retirement. And that might be true — but there are a few things that often go unsaid.
A lot of people bought an annuity three, five, or ten years ago. Through a bank teller. Through an advisor whose firm has since closed. Through a rep they've long lost contact with. Somewhere along the way, the paperwork got filed and the questions stopped.
Here are four things worth knowing.
1. Your fees may be higher than you think
Most people know their annuity has some kind of fee. But very few realize just how many fees can stack on top of each other — especially with variable annuities.
Typical variable annuity fee stack
- Mortality & Expense (M&E): 1.0% – 1.5% per year
- Administrative fees: 0.10% – 0.30%
- Rider fees (income, death benefit): 0.5% – 1.5%
- Underlying fund expenses: 0.5% – 1.0%
Add those up and you could be paying 3% to 4% per year — and that's before any market losses. Over 10 or 20 years, that can eat into your retirement savings significantly.
Comparing that fee load to what's available on today's contracts is one of the highest-impact checks we run in an audit.
2. Newer annuities have way better features
The annuity market has changed dramatically in the last five to ten years. If you bought your annuity a while back, newer products may offer significantly better terms.
What's changed since you bought
- Long-term care riders — access your annuity value if you need care
- Fees on new contracts are often lower than what you're paying
- Guarantees have gotten stronger — more protection, same premium
- Interest rates have shifted — a side-by-side check will tell you which way
- Payout options have expanded, giving you more flexibility in retirement
This doesn't mean you should automatically switch — every situation is different. But if you haven't reviewed your annuity in the last few years, there's a real chance you're not in the best contract for who you are today.
3. Your surrender charges may have already expired
This is one of the biggest reasons people stay in annuities that aren't serving them well. They assume they'll get hit with a big penalty if they move their money.
But here's the thing: surrender periods don't last forever. Most run between 5 and 10 years. If you've had your annuity for a while, there's a real chance it's already over — meaning you could move to a better product without paying a single penny.
Many people simply never check.
It takes about 30 seconds to look at your contract and find out. If you're not sure, we can pull the details for you in the free audit.
Check My Contract Free4. Your agent may not be checking in
When you first bought your annuity, your agent probably walked you through everything. But over time, a lot of agents stop reaching out — especially once they've been paid their commission.
Your annuity should be reviewed at least once a year. Markets change. Your needs change. New products come out. A good advisor stays in touch and makes sure your annuity is still working for you — not just collecting dust.
If you can't remember the last time your agent called to review your contract, that's a red flag.
How our audit works, start to finish
- Tell us the basics. Fill out a short form. Someone reaches out within one business day.
- Sign the authorization. A simple form that lets us gather information only. You never grant access to change anything.
- We gather and compare. Full contract details pulled from your carrier and compared side-by-side against today's top A+ rated carriers.
- Straight answer. If your annuity wins, we say "keep it." If something better exists, we show you exactly what and why.
Do you have the right annuity?
Find out with a free, no-obligation audit. If your annuity is the best fit, we'll tell you to keep it. That's the promise.
Start My Free Audit