Why Should You Not Worry About Deferred Annuity Guaranteed Income Rider Fees?

Shawn Plummer

CEO, The Annuity Expert

Understanding the Value Over SPIA

A deferred annuity with a guaranteed income rider, despite its fees, offers several advantages over a Single Premium Immediate Annuity (SPIA) without fees:

  1. Control Over Your Money: With a deferred annuity, you retain control over your funds. This means you can access your money if needed, unlike a SPIA where you typically lose access to the principal once payments start.
  2. interest Earnings: Deferred annuities allow your money to grow through interest accumulation. This growth can offset the impact of fees and potentially increase your overall benefits.
  3. Lump Sum Death Benefit: In the event of your death, a deferred annuity often provides a lump sum death benefit to your beneficiaries, which is not usually available with SPIAs.

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Prioritizing Income Over Saving on Fees

  • If your primary goal is to maximize income, focusing solely on fees might not be beneficial. Despite higher fees, a deferred annuity with a guaranteed income rider often provides higher payments compared to a SPIA.


In summary, while it’s important to consider fees, they should not be the sole deciding factor. The additional benefits and features of a deferred annuity with a guaranteed income rider can provide more value in the long run. If income is your primary concern, prioritizing the payment amount over fee savings is a reasonable approach.

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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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