Can Annuities Lose Money? 
That is an excellent question ! In most cases the answer will be no , if you 've been careful and chosen well with your annuity . If the interest rates and income riders will guarantee growth above inflation , it 's tough to lose money , especially if you end up in a lower tax bracket when you collect , and the tax burden is n't bad . You can lose money if the interest rate is too low , or you do not have guaranteed floors , or you pull money out during the surrender period . You can lose money if the return is not approximate to what you could have gotten if the money had been invested in a different vehicle that returned higher . It is really vital with any investment that you sit down and discuss it thoroughly with a knowledgeable advisorbefore making the investment , whatever it may be . But many annuity products out there are great options , and very safe investments . I hope that helps , thanks for asking ! 