Why Annuities Require Strong Financial Literacy

Annuities are complex retirement products with various types—fixed, variable, and indexed—each having distinct features, benefits, and risks. Understanding these differences is vital for income security, tax treatment, and financial well-being. Annuities often include riders, surrender charges, and fees that affect long-term value. Financial literacy helps consumers evaluate options, interpret contracts, and avoid costly mistakes, while professionals need strong knowledge to provide clear, ethical advice.