Fixed annuities are designed for safety. After all, you can not lose money because of the bag decreases when you are in them, right? Yes, but that does not necessarily mean they are safe.
While fixed annuities are safe in terms of not losing money in a market perspective, a thing to keep in mind is that there are other facets to which can be unsafe. The first is its lack of liquidity. Of course there is an element of tax deferral, however, One thing to consider is that if you need money, you may have to pay some penalties to reach it. This is often referred to as the delivery costs. Many times, These delivery charges can be quite steep in their annuities. This makes them at risk of a liquidity standpoint.
Another factor to consider is the rating insurance company. Now if you ask me, scores are not necessarily the "end all" when it comes to safety. In a comparison to Apple Apple, Merrill Lynch, Enron had qualified as a purchase of shares fell from its peak in the single digits. Ratings are not always reliable and this is true for Insurance companies also. The security of an insurance company determines the safety of their pensions too. It is important to do your due diligence and While choosing an insurance company.
There are also many other factors to consider when it comes to choosing fixed annuities determined safety.
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