What Are The Risks Of A Fixed Annuity? 
What are the risks of a fixed annuity ? Well the biggest risk is `` inflation '' risk . That is the money being saved in an annuity is not earning enough to keep pace with or be ahead of inflation . Annuities purchased from financially strong companies do n't suffer some of the other risks involved with investing . Actually annuities tend to be very safe choices and as such are not strong return choices , but that is always the side effect of safe investing . For many the idea of putting their retirement money at risk of loss is too much and so annuities become good choices for them . 