Why or why not are annuities suitable investments for retired people?

"Variable" annuity plans are generally not suitable for retired people as they carry higher risk and expenses.

"Immediate fixed" annuities may be appropriate, if the individual wants to lock in a known monthly payout (similar to a defined retirement payout) and is willing to forgo leaving their investment to their heirs. Also, they should be comfortable with not being able to drop out of the annuity as the fees to do that are high.

If a retired person does not need the certainty of stable income then they are typically better off investing in mutual funds or stocks, CD's and bonds where they have full control over their investments and generally achieve a overall higher return.

This question is way too vauge for a specific answer. There are so many varied factors that go into the discussion, that it is impossible to give a truly comprehensive answer. It can depend on the following issues: Age and health of the owners, existing investments, income and real estate, projected heirs, tax bracket, state you live in, and many more.

If you are interested in getting a personal answer that fits your situation, you can email me at smelamed@thecolumbiagroup.net and we can make up a time to speak.

Sam

annuities are designed to be used at later date for such things as retirement. Since longivity is uncertain, The ability to recover the funds is doubtful.