Do Annuities Lose Money When the Stock Market Goes Down?

Shawn Plummer

CEO, The Annuity Expert

Types of Annuities and Stock Market Impact

  1. MYGAs (Multi-Year Guaranteed Annuities):
    • Impact of Stock Market: No
    • Explanation: MYGAs provide a fixed interest rate for a specified period, unaffected by stock market fluctuations.
  2. Fixed Annuities:
  3. Indexed Annuities:
    • Impact of Stock Market: No
    • Explanation: While linked to a market index, indexed annuities typically have a floor that protects against market downturns, ensuring no loss of principal.
  4. SPIAs (Single Premium Immediate Annuities):
    • Impact of Stock Market: No
    • Explanation: SPIAs provide fixed payments that are determined at the time of purchase, not influenced by the stock market.
  5. Variable Annuities:
    • Impact of Stock Market: Yes
    • Explanation: Investment choices in variable annuities are subject to market risk, and their value can decline if the stock market goes down.
  6. RILA (Registered Index-Linked Annuities):
    • Impact of Stock Market: Yes
    • Explanation: RILAs offer a level of market participation with a risk of loss due to market downturns.

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Annuity Types and Stock Market Impact

Annuity TypeStock Market ImpactDescription
MYGANo ImpactFixed interest rate, market-independent
Fixed AnnuityNo ImpactGuaranteed return, not market-linked
Indexed AnnuityNo ImpactMarket-index linked with downside protection
SPIANo ImpactFixed payments, market-independent
Variable AnnuityImpactedSubject to market risk
RILAImpactedMarket participation with potential for loss


Different types of annuities have varying levels of exposure to stock market volatility. Understanding these differences is crucial for making informed investment decisions. While MYGAs, fixed, indexed, and SPIAs are generally unaffected by market downturns, variable and RILA annuities do carry a risk of loss when the stock market declines. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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