How Secure Are Annuities? 
Annuities , either fixed or variable can be a good choice for providing retirement income for some of us , depending on particular situations . The major security concern relative to annuities is the financial strength of the insurance company that you choose or have chosen . You often hear the term `` guaranteed income '' associated with annuity advertising and marketing . However , if the insurance company that holds your annuity money goes bankrupt , you could lose some or all of your hard-earned retirement money . Some States have funds that can help reimburse some of the many policyholder losses in such failure situations . Also , the Feds can step-in , as we found out several years ago but there is no guarantee that will happen . So , insurance company failure is a very real concern , particularly with regard to annuities , although bankruptcy not very likely with regard to the most financially secure companies . The bottom line is that you have to feel very comfortable that your annuity money will be there when and how you are scheduled to receive it . Stay with the strongest companies financially . Ask for documentation of financial strength and ask a lot of other questions . Be as comfortable as possible with the carrier who is going to be controlling your hard-earned money . 