Annuity sales just had their strongest quarter on record, with multi-year guaranteed annuities leading the way as retirees look for income they can't outlive. That means more calls, mailers, and free-dinner seminar invitations landing on retirees than in recent years.
An annuity can be a reasonable way to lock in guaranteed income. It can also lock up your money for years, carry fees that aren't obvious from the pitch, or sit on investments riskier than the guarantee suggests. The difference usually comes down to what you ask before you sign, not the interest rate on the brochure.
Decision
What kind of annuity are you being offered?
The core questions below apply to any annuity, but a few points depend on the type.
Why Annuity Sales Are Surging Right Now
Multi-year guaranteed annuities were the top-selling annuity type in the second quarter of 2026, another record-setting quarter for structured annuity sales overall. Retirees are choosing predictable income over market swings, and insurers are marketing hard to reach them.
Some of the growth sits behind newer, more complex structures. Industry researchers have flagged that certain registered index-linked and structured annuity products now hold private credit investments behind the scenes, sometimes called the insurer-private equity-annuity chain. That doesn't make every annuity risky, but it means the guarantee is only as strong as what's actually backing it, and that isn't always obvious from the sales materials.
The Terms That Matter More Than the Pitch
Two numbers decide how much flexibility you actually have: the surrender period, which is how many years you'd pay a penalty to withdraw more than a set amount, and the free-look period, a state-required window, typically 10 to 30 days, where you can cancel the contract penalty-free after signing. Both should be stated as exact numbers, not a range.
If you're looking at a fixed-rate annuity, ask one more thing: cap rates and participation rates can change year to year at the insurer's discretion. Ask how often the company has adjusted those rates historically and by how much, since that history tells you more than this year's number alone.
If you're weighing this with an advisor, Vet a Financial Advisor Before You Retire covers how to check who's actually paid to recommend what.
Once you have real answers instead of a verbal pitch, it helps to write your own questions down before the next meeting.
Keep legal questions focused on deadlines and next steps.
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Keep legal aid and paperwork meetings focused on deadlines, documents, and next actions.
Checklist
Ask what's actually behind the guarantee
This is the question most pitches skip.
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Checklist
Get these in writing before you sign
A verbal answer isn't a commitment.
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Timeline
Before you sign
Check off each step as you complete it.
Ask for the full contract in writing and read it away from the sales meeting.
Show it to a fee-only fiduciary advisor or call your state insurance department with questions.
If you change your mind, cancel in writing before the free-look window closes.
Save what you asked and what you're waiting on before you decide.
When an Annuity Makes Sense, and When to Slow Down
An annuity can make sense when it covers a specific gap, essential expenses that Social Security and any pension don't reach, or when removing market risk from one slice of your savings genuinely helps you sleep at night. Used that way, it's a tool with a clear job, not your whole plan.
A few signals mean it's time to slow down: pressure to move an entire retirement account into one product the same day you hear about it, replacing an existing annuity through a 1035 exchange without a clear, written net benefit, or a seminar built around a free meal and a tight deadline. None of those are reasons to say no on their own, but all of them are reasons to take the contract home first.
If you're also weighing how to draw down savings without an annuity, Retirement Withdrawal Order and Tax Impact covers the alternative.
Common questions
Is now a bad time to buy an annuity?
Not necessarily, but it's a time to ask more questions than usual. Annuity sales just hit a record quarter, which means more retirees are being pitched one than in past years, and some of the newer products hold more complex investments behind the guarantee. Ask what's actually backing the contract before you focus on the interest rate.
What questions should I ask an annuity salesperson?
Start with who the actual issuing insurance company is and its financial strength rating, then get the exact surrender period, the free-look period, and any fees or caps that can change after you sign, all in writing. If the product is indexed or variable, ask how often the company has changed its caps or participation rates historically.
What is a free-look period on an annuity?
It's a state-required window, typically 10 to 30 days, after you sign an annuity contract, during which you can cancel it penalty-free. Confirm your state's exact number and the steps to cancel in writing before you sign, so you know exactly how much time you have to change your mind.
How do I check if an annuity company is financially stable?
Ask the agent for the name of the actual insurance company issuing the contract, not just the brand on the brochure, then look up its financial strength rating from AM Best, S&P, or Moody's. A strong sales pitch doesn't tell you anything about whether the company can pay out decades from now.
