Can You Lose Money in an Annuity?
Practical guidance from National Benefits Consultants for clients who want to understand annuity risk, principal protection, and how different annuities work before making a decision
The honest answer is:
it depends on the type of annuity.
Not every annuity works the same way. Some annuities are designed with principal protection, while others may involve more risk depending on the product structure.
At National Benefits Consultants, we help clients review annuities in a practical way. The goal is not to oversimplify the answer. The goal is to help clients understand where the risk is, what protections may exist, and whether the annuity fits the client’s real needs.
it depends on the type of annuity.
Not every annuity works the same way. Some annuities are designed with principal protection, while others may involve more risk depending on the product structure.
At National Benefits Consultants, we help clients review annuities in a practical way. The goal is not to oversimplify the answer. The goal is to help clients understand where the risk is, what protections may exist, and whether the annuity fits the client’s real needs.
Why the type of annuity matters
When people ask whether they can lose money in an annuity, they are usually asking about one of three things:
- market loss
- loss of access because of surrender charges
- choosing the wrong product for their needs
Why National Benefits Consultants takes a practical approach
At National Benefits Consultants, we do not treat annuities like all-risk or no-risk products.
We help clients look at:
We help clients look at:
- what kind of annuity they are considering
- what risks actually apply
- how much liquidity they want to keep
- whether the annuity fits the broader retirement plan
Questions to ask before Choosing an annuity
1. What type of annuity am I considering?
That changes the risk discussion right away.
2. Is principal protection part of this product?
That is one of the first things to confirm.
3. How much liquidity do I want to keep?
Surrender charges can matter even when market loss is limited.
4. Does this annuity actually fit my retirement goals?
That is the bigger question.
That changes the risk discussion right away.
2. Is principal protection part of this product?
That is one of the first things to confirm.
3. How much liquidity do I want to keep?
Surrender charges can matter even when market loss is limited.
4. Does this annuity actually fit my retirement goals?
That is the bigger question.
How National Benefits Consultants helps
At National Benefits Consultants, we help clients compare annuity options with a practical, client-focused approach.
We can help with:
We can help with:
- explaining where annuity risk may exist
- reviewing principal protection and liquidity issues
- comparing annuity options
- helping clients keep the decision clear and focused
The real risk is often buying the wrong annuity
In many cases, the biggest problem is not the concept of an annuity itself. It is buying a product that does not match the client’s time horizon, liquidity needs, or planning goals. That is why the review matters.
Need help understanding annuity risk before you buy?
Call 720-488-9892 or contact National Benefits Consultants to discuss your goals and retirement planning needs.