Do Annuities Lose Money in a Recession?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do Annuities Lose Money in a Recession?

No you do not lose money in a recession when investing in MYGAs, Fixed Indexed Annuities, and Fixed Annuities. You can lose money when investing in variable annuities.

No: MYGAs, Fixed Indexed Annuities, and Fixed Annuities

  • Multi-Year Guaranteed Annuities (MYGAs): MYGAs offer fixed interest rates for a specified period. They remain unaffected by market downturns, ensuring steady returns during recessions.
  • Fixed Indexed Annuities: These annuities yield returns based on a specific index, like the S&P 500, but have a guaranteed minimum interest rate. This feature protects the principal from market losses during economic downturns.
  • Fixed Annuities: Fixed annuities provide a guaranteed interest rate, making them immune to market fluctuations. Hence, they maintain their value during a recession.

Yes: Variable Annuities

  • Variable Annuities: Returns from variable annuities are tied to the performance of investment options chosen by the annuitant, like stocks and bonds. During a recession, these investments can lose value, leading to potential losses in variable annuities.

Our annuity payout calculator provides clarity on your investment’s growth over time.

Annuity Types and Recession Impact

Annuity TypeImpact During RecessionReason
MYGAsNo LossFixed interest rates unaffected by market
Fixed Indexed AnnuitiesNo LossMinimum interest rate guarantees
Fixed AnnuitiesNo LossGuaranteed interest rates
Variable AnnuitiesPotential LossTied to market performance


While MYGAs, fixed indexed, and fixed annuities are resilient during recessions due to their fixed interest features, variable annuities may lose value because their returns are tied to market performance. Understanding these differences is key to making informed investment decisions during economic downturns. Contact us today 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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