Fidelity Doubles Down on Deferred Annuities
ATTORNEY NEWSLETTER
Fidelity Investments is stepping up their inclusion of deferred annuities as part of retirement planning. Their move follows a record year for deferred income annuities, with sales at nearly $3 billion, up 22% from the previous year. As sales skyrocket, the only thing slowing down the market for deferred annuities is the regulatory scrutiny that will inevitably accompany a product with a reputation for risk.
Disadvantages of Deferred Annuities
Deferred annuities are still a relatively small piece of the annuity market, in large part due to a few major impediments. To start with, they are often difficult or impossible to withdraw from, they can fail to provide income early or long enough, and are generally regarded as a dangerously illiquid asset to own at a time when many retirees are having to shift their financial plans to accommodate a changing economy. Our California securities fraud lawyers warn that deferred annuities can tie seniors down when major life events occur, often leaving them trying to keep their heads above water.
The Other Side of the Argument
On the other hand, Fidelity says that their product provides an option to generate guaranteed income for retirement while avoiding taxation in the present. Customers purchase a deferred annuity long before they need it, in anticipation that it will protect them from outliving their retirement funds. Although this is a significant problem many seniors face as life expectancy improves, there are those who argue that deferred annuities provide little more risk coupled with tricky clauses and exceptions.
Talk to Us
If you have been sold a deferred annuity and believe that you have been harmed by your purchase, please contact the Evans Law Firm in San Francisco, which handles IRS tax fraud lawsuits, securities fraud whistleblower reward lawsuits, retaliation and employment litigation as well as elder abuse (physical and financial), elder law and estate planning (including living trust and will packages, powers of attorney, probate matters, Medi-Cal planning, estate administration, trust administration, will and trust contests, specialized trusts including special needs trusts, and conservatorships), consumer fraud class actions involving particularly insurance and banking fraud claims, consumer product liability and personal injury/wrongful death cases, asbestos-mesothelioma, pharmaceutical product liability, negligence personal injury claims.
