Is an Annuity Right for You? Here’s What You Should Know

Contracts can be confusing, and costs can add up fast if you’re not careful, but the right annuity can still be a good income strategy for the right person.

An older woman stands at the window with a cup of coffee and appears to be thinking.
(Image credit: Getty Images)

If you’ve been considering adding an annuity to your retirement plan, you’ve probably noticed that opinions vary widely as to whether it’s a good strategy.

Many people, potentially including some knowledgeable financial advisers, think annuities can play a vital role in retirement — especially if you need to shore up a shaky income plan. But others may argue that annuities often don’t live up to the hype, and consumers aren’t always sure about what they’re getting before they are persuaded by a sales pitch.

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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.

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David S. Corman
Investment Advisor Representative and President, Generations Retirement Group

As an Investment Advisor Representative and president of Massachusetts-based Generations Retirement Group, David Corman is committed to helping his clients navigate the stumbling blocks that can get in the way of enjoying a fulfilling retirement. The firm is dedicated to all aspects of retirement planning, including Social Security optimization, income planning and investing. David is co-author of the book "Plan Now. Retire Well."