Annuities 101: Questions to Ask Before You Decide

An annuity is an insurance contract that may help address a retirement income need. It deserves careful comparison with your other options, rather than a promise that one product works for everyone.

Understand the contract

Fixed, variable and indexed annuities have different risks, costs and crediting methods. Variable annuities can lose value. Indexed products may limit credited growth through caps or other contract provisions. A lifetime income feature depends on the payout option or rider selected; it is not automatic in every contract.

Look beyond the headline

Ask about fees, surrender charges, withdrawal limits, tax consequences and any market value adjustment. Early access can reduce what you receive. Guarantees depend on the issuing insurer’s financial strength and claims-paying ability.

Start with your needs

Consider when you need income, how much access to savings you need, and what other retirement resources you have. Request the written contract and a clear explanation of guaranteed and nonguaranteed features before deciding.

Schedule a retirement conversation with The Adkisson Group to discuss your questions.

Updated October 26, 2026. General education; individual suitability and tax treatment vary. Source: Investor.gov — Annuities.