What Are The Risks Of A Fixed Annuity? 
The largest risk of a fixed annuity is the loss of buying power . Safety of principal and guaranteed payments is the strong suit of an annuity . An annuity forms the base to protect the retirement income stream . There are certain predictable expenses such as food , shelter and clothing which can be addressed with an annuity . Inflation can erode the buying power of the annuity over time . 