Annuities have long carried a reputation as one of personal finance’s worst deals — high fees, complicated terms, and commissions that made many advisers reluctant to recommend them. But in MarketWatch’s Weekend Reads this week, the outlet argues that now might be the perfect time to reconsider that verdict.
The argument, in short: the math has changed. Years of higher interest rates have lifted the payouts insurers can offer on fixed and income annuities, making the guaranteed lifetime income they provide look far more attractive than it did in the near-zero-rate era.
MarketWatch Weekend Reads (Credits: MarketWatch)
Why MarketWatch Says Annuities Deserve a Second Look
The core appeal of an annuity has never changed — it converts a lump sum into income you cannot outlive, essentially a personal pension. What has changed, according to MarketWatch, is the environment around them. With the stock market seesawing, the idea of locking in a guaranteed income stream holds obvious appeal for retirees worried about running out of money.
The same Weekend Reads column also covers how to adjust your approach as markets swing, notes some good news for home buyers, and includes advice from The Moneyist — framing the annuity question as part of a broader rethink of retirement planning in a volatile year.
The Fine Print Still Matters
None of this erases the reasons annuities earned their bad reputation. Variable and indexed annuities can still carry steep fees and lock-in periods, and critics have long argued that many products are sold rather than bought — pushed by advisers earning commissions rather than chosen by informed buyers.
MarketWatch’s case is narrower: for the right retiree — someone who values guaranteed income over growth potential — today’s payouts are meaningfully better than they were a few years ago. The piece is an explainer on shifting conditions, not a buy recommendation. As with any financial product, the outlet’s reporting suggests doing the homework: compare payout rates, check the insurer’s financial rating, understand the fees, and know exactly what you’re giving up in liquidity.
The retirement-planning takeaway is less “buy an annuity” and more “don’t decide based on a decade-old reputation.” In a higher-rate world, the numbers deserve a fresh look.
Source: MarketWatch — read the full story there.
