What are the disadvantages of annuities?
Most people find the biggest disadvantage to annuities is illiquidity. A poorly chosen annuity will reflect that sentiment. However, annuities are great for keeping retirement spending in check. With withdrawal limits typically at 10% per year, the limits are much higher than the 4%-4.5% spending limit on your retirement savings if you want a 90% chance of not outliving your assets.
