Are Annuities Considered High-Risk?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Annuities and Their Risk Profile

Annuities are financial products that provide a steady income stream, typically used for retirement purposes. They have a long history, dating back to Roman times, and have gained popularity in modern financial planning. Generally, annuities are not considered high-risk investments, especially when compared to more volatile options like stocks or cryptocurrencies.

Guidelines for Considering Annuities

  1. Choose Reputable Annuity Companies: Avoid B-rated companies. Opt for well-established, financially sound institutions.
  2. Prefer Guaranteed Lifetime Income Riders: Instead of annuitizing, where you give up control over your principal in exchange for a lifetime income stream, consider using guaranteed lifetime income riders. These riders allow you to retain control over your funds while still providing a steady income.
  3. Shop Around and Avoid Fees: It’s crucial to compare different annuity products and not pay excessive fees for managing them.
  4. Be Cautious with Variable Annuities: If you cannot afford to lose money, avoid variable annuities. They can be subject to market fluctuations, making them more risky.
  5. Use an Independent Annuity Broker: Many annuity products might not suit your needs and could introduce unnecessary risks. An independent broker can provide unbiased advice and a wider range of products.
Is An Annuity Considered A High Risk Investment


While annuities can be a stable and reliable component in retirement planning, it’s important to be informed and cautious in your approach. Following these guidelines can help minimize risks and ensure your investment enhances your retirement rather than posing unnecessary risks. Contact us for a free quote!

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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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