How to Decide If an Annuity Fits Your Retirement Plan (Ep. 119 | Pt. 4)
If you’re a woman planning for retirement and an annuity has been recommended to you, the hardest part may not be understanding how it works. It may be deciding whether it actually belongs in your retirement plan.
Asking better questions can help you understand what you’re considering before you commit.
In this episode, I explain how to evaluate whether an annuity fits within your retirement plan. I walk through the questions I want you to ask about the retirement need you’re trying to address, other available options, what an annuity actually provides, what you may give up in return, how fees and surrender charges work, and what could happen if your circumstances change. I also explain why reviewing the contract and understanding your free look period can give you time to make a more informed decision.
Key points:
- Start by identifying the retirement need you want an annuity to address before evaluating the product itself.
- Compare an annuity with other ways of accomplishing the same retirement goal before making your decision.
- Understand exactly what the contract protects or provides, including income, principal, and access to money.
- Review rider fees, commissions, advisory fees, and surrender charges so you know what you’re paying for.
- Consider how changing health, family needs, or cash needs could affect whether the annuity still fits your plan.
- And more!
Resources:
- Get Your FREE Simply Retirement Roadmap
- #115 – Understanding Annuities Before You Decide if They Belong in Your Retirement Plan
- #116 – Which Type of Annuity Fits Your Retirement Plan?
- #118 – How Are Annuities Taxed? A Simple Guide for Retirement
- Does an Annuity Fit Within My Financial Plan?
- 2026 Tax and Retirement Planning Cheat Sheet
Connect with Eric Blake:
- www.TheSimplyRetirementPodcast.com
- Join the Simply Retirement Newsletter
- Ask a Question or Suggest a Topic for the Podcast
- Blake Wealth Management
- YouTube
Annuities are insurance products issued by insurance companies and involve costs, fees, limitations, and contractual terms that vary by product. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Before purchasing an annuity, investors should carefully consider their financial objectives, risks, charges, expenses, and contract features, and consult with their financial, tax, and legal professionals.
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