Special Report: Annuities and Older Adults

An annuity can be appropriate as part of an overall financial plan, even for an older adult. There are many well-qualified and capable financial professionals who provide solid advice to their clients about annuities and other financial products. They provide complete information to clients, about advantages and disadvantages of the products they offer, in the context of the client’s individual financial position and objectives.

An important part of our work is helping people plan ahead, to maintain control of their care and finances. In doing our work, we often discuss the financial steps people have taken. All too frequently in these discussions, we find that older adults have been sold annuities in what appear to be very inappropriate circumstances. We’re very concerned that people are not being told in a clear way about all aspects of the annuities they are being offered.

Older adults and their families need more information about annuities. Unfortunately, a discussion of all aspects of annuities would take much more space than we have available. This Special Report does not provide a complete and balanced statement of advantages and disadvantages. We’ve had to choose what to discuss. It appears that advantages of annuities are being covered by those who successfully sell them. So, we’ve chosen to focus on disadvantages of annuities that frequently apply to older adults. Our hope is that readers will use this Special Report as part of developing their own balanced understanding of annuities.

This Special Report contains six separate articles, including:

May 2007

Don't forget to Ask First!

Already Purchased an Unsuitable Annuity? Go to our Who Can Help section for information on who to complain to.

This is Part 1 of the Special Report - go to Part 2.