05.22.26

Fidelity Says Retirees Have Annuities All Wrong

by: Damilola Esebame

In a new analysis, Fidelity Investments says misconceptions about annuities prevent many Americans from considering products that can strengthen retirement security, even as U.S. annuity sales hit a record $464.1 billion in 2025. Fidelity challenges five common myths: that annuities are only for retirees, always expensive, unnecessary before retirement, replaceable by investment accounts and forfeited to insurers upon death. The firm notes that deferred annuities can provide additional tax-deferred savings and guaranteed lifetime income, while costs vary widely, with some low-fee options under 0.5% annually. Fidelity also highlights that annuities are the only private financial products guaranteeing income for life, helping retirees avoid outliving their savings.

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