Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTVishesh RaisinghaniTue, July 14, 2026 at 12:15 PM GMT+2 5 min readPhoto by RossHelenMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below."I would die and go to hell before I would sell an annuity," billionaire Ken Fisher said in a 2018 ad (1) for his investment firm, Fisher Investments. In an op-ed written for Forbes a few years earlier, he called the financial instruments "scumbag products." (2)So if someone in a nice suit is scaring you into adding annuities to your retirement in 2026, should you send them in the same direction?Must ReadWell, before you do that, it's worth understanding what annuities are designed for, why they get such a bad rap and whether they're a good fit for your personal finances.Understanding annuities (and why they're often pushed)Annuities are designed to offload risk for anxious investors.At a basic level, these are contracts that investors sign with insurance companies to lock in regular income payments in retirement, according to US Bank (3). And that market has grown rapidly.In 2025, annuity sales totaled $460 billion — nearly double the 2020 total and marking the fourth consecutive record-breaking year, according to LIMRA (4) and Plan Advisor (5). Much of this growth seems to be driven by the need for peace of mind.A whopping 97% of annuity owners said they worry less about running out of money in retirement, while 88% said it has eased concerns about a stock market downturn, according to Bloomberg (6).However, the downsides of these products are often overlooked.According to Fisher Investments, annuities could have excessively high fees, restrictive lock-up terms, high surrender charges and misleading interpretations of "guaranteed returns."The firm also highlights potential conflicts of interest."Annuity providers often reward their salespeople with large commissions that are built into the policy," says the Fisher report.Simply put, annuities could be useful for some people, but you need to be vigilant to make sure they're the right fit for you. This is especially true if your savings exceed $2 million.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info