RetireSavor educational guide · Sources checked September 8, 2026
How this content is prepared
The useful takeaway: Not every annuity protects against investment losses. The name alone does not tell you the risk.
Variable annuities
A variable annuity offers investment options whose performance affects contract value. Losses are possible. Insurance features, investment expenses and optional riders can add costs. Read the prospectus to understand the options, fees, transfers and restrictions that apply to the benefits you choose.
Registered index-linked annuities
A RILA links changes in value to an index using defined upside and downside terms. Buffers and floors work differently. A buffer may absorb an initial portion of a loss; losses beyond it can still reach you. A floor sets a stated limit for the applicable measurement period. Early withdrawals can produce different outcomes from holding through the full term.
Compare the risk you actually retain
Ask for examples with a modest loss, a severe loss and a withdrawal before the term ends. Do not infer safety from an illustration showing only rising markets. Compare the proposed contract with alternatives that have comparable risk, time horizon and liquidity.
Tax advantages are not additive
A tax-advantaged retirement account already has tax rules of its own. Putting a variable annuity inside one does not create an extra layer of tax deferral. The insurance features would need to justify their cost on their own. Consider the entire household plan before adding complexity.
Bring these questions
- How much can I lose in a severe market decline?
- What happens if I exit mid-term?
- Which fees continue during poor performance?
Sources & further reading
General education, not a product recommendation. Contract terms and your individual circumstances control.