When it comes to preparing for retirement, one question matters more than all the rest: Will my money last? For decades, annuities—especially fixed and fixed indexed annuities—have offered a reliable solution for generating predictable income without market risk. Yet somehow, annuities have become one of the most misunderstood financial products in America.
It’s time to make annuities safe again. That means restoring their reputation, educating consumers on the truth, and helping retirees understand when and how annuities fit into a secure income plan.
The Reputation Problem: Where It All Started
Fixed and indexed annuities weren’t always controversial. In fact, for generations, retirees counted on annuities for steady income, often in the form of pension-like payments that lasted a lifetime.
But over time, the financial landscape changed. The rise of the stock market and the dominance of the asset management industry shifted focus away from principal protection and toward portfolio growth. Many large firms—particularly those involved in managing assets under advisory (AUM)—viewed annuities as competition. After all, if a client purchases an annuity, that’s money no longer managed by their firm.
The result? An industry-wide campaign to cast doubt on annuities, labeling them as “complex,” “expensive,” or “too good to be true.” While there are products to avoid, these sweeping generalizations have left consumers confused—and potentially unprotected.
The Truth About Fixed and Indexed Annuities
Let’s be clear: not all annuities are created equal. But fixed annuities and fixed indexed annuities (FIAs) are specifically designed for safety, growth potential, and guaranteed income.
Here’s what they actually offer:
- Principal protection – Your original investment is not subject to market losses.
- Tax-deferred growth – Like IRAs and 401(k)s, annuity growth isn’t taxed until withdrawn.
- Lifetime income options – Annuities can be structured to pay income for as long as you live, no matter how long that is.
- No ongoing management fees – Unlike advisory accounts, many fixed annuities have no annual fees.
- Index-linked growth – With FIAs, your returns are tied to market indexes (like the S&P 500) without risking your principal.
In short, these products are built to give peace of mind—especially important for retirees who can’t afford to ride out another market crash.
Why Wall Street Doesn’t Like Annuities
To make annuities safe again, we have to acknowledge the resistance from within the financial industry itself.
Why the Pushback?
Despite their potential to provide guaranteed income and principal protection, fixed and fixed indexed annuities often get sidelined by the traditional financial services industry. Why? Follow the money.
- Assets Under Management (AUM) Revenue Loss
The majority of brokerage firms and RIAs operate under an AUM model, meaning they collect ongoing fees—typically 1% or more—based on the size of a client’s portfolio. When a client moves funds into a fixed annuity, those assets are no longer managed by the advisor or firm. That translates into lost recurring revenue. - Push Toward Variable Annuities
While fixed annuities offer safety and guaranteed income, many advisors are more incentivized to sell variable annuities—which keep assets invested in the market and often come with high internal fees, complex riders, and significant risks. Why? Because variable annuities often pay higher upfront commissions or allow firms to continue collecting advisory fees. Unfortunately, that incentive structure can steer clients toward riskier, more expensive products. - Compliance & Disclosure Requirements
Many broker-dealers impose internal restrictions on offering fixed annuities because they’re not securities. Advisors may need to step outside their firm’s platform or work through a third-party to present them, which creates friction—and discourages use. - Lack of Education or Training
Some advisors simply don’t understand how fixed or indexed annuities work. Rather than admit a knowledge gap, they dismiss the product altogether, labeling it “too complicated” or “not worth considering.” That leaves clients without objective guidance.
In other words, the bias against fixed annuities isn’t always about what’s best for the client. Often, it’s about what’s most profitable for the firm.
But that doesn’t mean annuities are bad. It just means the system is incentivized to not offer them—even if they’re the best solution for a client’s needs.
What “Make Annuities Safe Again” Really Means
The phrase isn’t about changing the product—it’s about changing the narrative.
To “make annuities safe again” means:
- Correcting misinformation – Helping people understand that safety and income don’t have to come with risk.
- Highlighting the right annuities – Focusing on fixed and fixed indexed annuities, not variable annuities that can lose value.
- Rebuilding trust through education – Encouraging advisors to lead with clarity and consumer-first guidance.
- Using annuities where they fit – Not as a cure-all, but as part of a balanced retirement strategy.
It’s time to stop letting outdated opinions or Wall Street bias dictate retirement decisions. Retirees deserve clear answers and safe options.
Who Benefits Most from Annuities?
While not every retiree needs an annuity, they make sense for many people, especially:
- Near-retirees (ages 55–70) concerned about outliving their savings
- Those without pensions looking to create their own “retirement paycheck”
- Investors who lost money in recent market downturns and want more protection
- Anyone seeking a portion of guaranteed lifetime income
The goal isn’t to put all your money into an annuity. It’s to secure the non-negotiables—monthly income for essential expenses—so you can confidently invest the rest.
How to Evaluate the Right Annuity
Not every annuity is the same. Here’s what to look for:
- Independent guidance – Work with an advisor who isn’t tied to a single carrier or product line.
- Clear contract terms – Make sure you understand surrender periods, income riders, and growth caps.
- Reputable insurers – Stick with companies rated A or higher by A.M. Best.
- Suitability – A good advisor will never push a product that doesn’t fit your goals, liquidity needs, or risk tolerance.
Most importantly, ask questions. If it sounds too good to be true—or too vague to understand—keep looking.
Why Independent Advisors Are Leading the Charge
Unlike captive advisors or brokers at wirehouses, independent financial professionals have access to a broader range of annuity products—and no corporate agenda. They’re often best positioned to compare multiple solutions and educate clients objectively.
At SafeMoney.com, we work with a nationwide network of independent annuity experts who put education before sales. Our goal is to help you understand your options without pressure, confusion, or fine print you don’t understand.
Making Annuities Safe Again Starts with You
If you’re nearing retirement and wondering whether an annuity might be the right fit, here’s what you can do:
- Research trusted sources – Skip the sensational headlines and learn from platforms like SafeMoney.com that prioritize unbiased education.
- Speak with an independent advisor – Someone who understands annuity contracts and retirement planning.
- Understand your income needs – Map out what you’ll need each month—and how guaranteed income can help fill that gap.
The right annuity won’t make you rich—but it can help ensure you never run out of income, no matter what happens with the market.
Final Thoughts: It’s Time to Rethink Retirement Safety
Annuities aren’t the problem—misinformation is. As retirees face longer lifespans, volatile markets, and shrinking pensions, the need for safety and guarantees is more urgent than ever.
Let’s bring the conversation back to the facts. Let’s restore clarity, trust, and confidence.
Let’s make annuities safe again.
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Written by Brent Meyer, founder and president of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.
Disclaimer: This article is for informational purposes only and is not intended as financial or legal advice. Annuity products vary by issuer, and guarantees are subject to the financial strength of the issuing insurance company. Please consult with a licensed financial professional to determine what is suitable for your individual situation.
The post Make Annuities Safe Again: Exposing the Industry Bias first appeared on SafeMoney.com.