What Are the Reasons Some Financial Advisors Dislike Annuities?

Shawn Plummer

CEO, The Annuity Expert

What Are the Reasons Some Financial Advisors Dislike Annuities?

Annuities are financial products that can provide a steady income stream, typically used for retirement planning. Despite their popularity, some financial advisors are less enthusiastic about them. The reasons mainly revolve around the level of control and revenue opportunities for the advisors.

Reduced Control for Advisors

  1. Limited Flexibility: Annuities often lock in funds, reducing the ability to make dynamic investment decisions.
  2. Set Terms: The terms of annuities are usually fixed, leaving little room for advisors to adjust strategies based on market changes or client needs.

Lower Revenue Opportunities

  1. Fee Structure: Annuities can have lower fees compared to actively managed funds, reducing the earning potential for advisors.
  2. One-time Commissions: Some annuities pay advisors a one-time commission, as opposed to ongoing fees from managing assets.

Client Considerations

  1. Client Needs: Advisors may believe other investment vehicles better serve their clients’ needs.
  2. Complexity and Suitability: Annuities can be complex, and not all types are suitable for every client, leading to potential misalignment with client goals.


While annuities automate certain aspects of retirement planning, the reduced control and revenue opportunities for advisors can be significant factors in their reluctance to recommend them. Advisors need to balance their professional judgment with the client’s best interests. For more information on financial planning and investment strategies, contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

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

Scroll to Top