Yahoo Finance warns affluent investors against annuity pressure as sales hit record $460 billion
A new analysis from Yahoo Finance questions the suitability of annuities for investors with savings exceeding $2 million, citing high fees and conflicts of interest despite record-breaking industry sales.
An article published by Yahoo Finance on 14 July 2026 has reignited scrutiny of annuity sales tactics, advising investors not to be pressured into purchasing products that may not align with their financial needs. The piece draws on historical criticism from billionaire Ken Fisher, who famously described annuities as "scumbag products" and stated in a 2018 advertisement that he would "die and go to hell" before selling one.
The report highlights that the annuity market reached a record $460 billion in sales in 2025, according to data from LIMRA and Plan Advisor. This figure represents nearly double the volume recorded in 2020 and marks the fourth consecutive year of record-breaking sales. Much of this growth has been driven by investors seeking protection against market downturns and longevity risk.
Support for the products remains strong among current holders. A survey cited by the article from Bloomberg indicates that 97% of annuity owners report reduced worry about running out of money in retirement, while 88% say the products have eased concerns regarding stock market volatility.
However, the Yahoo Finance analysis warns that these benefits come with significant downsides, including high fees, restrictive lock-up terms, and substantial surrender charges. Fisher Investments is cited as highlighting potential conflicts of interest, noting that annuity providers often reward salespeople with large commissions built into the policy, which may incentivise aggressive selling tactics.
The article suggests that annuities may be inappropriate for individuals with savings exceeding $2 million, arguing that such investors are less likely to outlive their assets and should avoid exposing capital to surrender fees. Instead, it recommends consulting fee-only fiduciary advisors who are legally obligated to act in the client's best interest.
For those seeking alternative sources of predictable cash flow, the report points to certificates of deposit and fractional rental property investments. It specifically mentions platforms such as CD Valet, which tracks over 40,000 verified rates from insured institutions, and Mogul, which offers fractional ownership in rental properties with reported average annual internal rates of return of 18.8%.
