Do Annuities Have Hidden Fees?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do Annuities Have Hidden Fees?

No, annuities do not have hidden fees. All the fees associated with annuities are listed in brochures, applications, and contracts. This transparency is a protective measure for insurance companies against potential lawsuits. However, it is essential to use an annuity broker who can help identify and explain all the fees involved.

Understanding Annuity Fees with the Help of a Broker

  • Mortality and Expense Risk Fees: Covers the insurance risk taken by the company.
  • Administrative Fees: For account maintenance and paperwork.
  • Surrender Charges: Applied if you withdraw funds early.
  • Rider Fees: For additional features like income guarantees.

Breakdown of Common Annuity Fees

Fee TypePurposeTypical Range
Mortality & Expense RiskInsurance risk coverage1.00-1.50%
Administrative FeesAccount maintenance and paperwork$30-50/year
Surrender ChargesEarly withdrawal penalty7-20%
Rider FeesExtra features (e.g., income guarantee)Varies


Annuities come with various fees, all of which are outlined in their respective documents to avoid legal issues. An annuity broker plays a crucial role in highlighting and explaining these fees, ensuring that clients fully understand their financial commitments. This guidance is vital for making informed decisions about annuity investments.

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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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