Are Income Annuities Fair?

An off-kilter idea of fairness may be getting in the way of some people's long-term plans for guaranteed income.

If you get a chance, you might read this article, “Why Retirees May be Wary of Annuities.” Written by two knowledgeable academics and based on a study of consumers, the authors conclude that investors’ aversion to income annuities may be related more to a question of fairness than the value of the investment itself.

At the crux of the issue is the question of whether it’s fair that an insurance company can hold on to part of the money a person pays into an annuity if they die before getting their premium back in annuity payments.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Jerry Golden, Investment Adviser Representative
President, Golden Retirement Advisors Inc.

Jerry Golden is the founder and CEO of Golden Retirement Advisors Inc. He specializes in helping consumers create retirement plans that provide income that cannot be outlived. Find out more at, where consumers can explore all types of income annuity options, anonymously and at no cost.