Fidelity’s Annuity Push: Then vs Now

It used to be that the biggest investment firms on the block wanted nothing to do with annuities. Times have changed. Fidelity, long considered a bastion of anti-annuity sentiment, has not only come around—they’re doubling down. Let’s break down what’s happening, why it matters, and what you need to know if you’re getting advice from one of these big-name firms.

A New Tune from Fidelity

Not long ago, Fidelity wouldn’t touch annuities with a ten-foot pole. They leaned hard into market-based investments, and their advisors regularly steered people away from guaranteed income products. Fast forward to today: Fidelity is actively recommending that retirees take up to 25% of their portfolio and use it to purchase a guaranteed income annuity.

This isn’t a rumor. Clients are seeing it firsthand—like one guy I worked with last year. He came to me after Fidelity suggested a guaranteed income annuity as part of his retirement plan. I ended up winning his business by offering a better deal, but it was a turning point. If Fidelity’s pushing annuities now, something’s shifted.

Why the Shift Matters

Fidelity’s pivot isn’t just a marketing gimmick—it’s a recognition of changing demographics, market volatility, and the need for more predictable retirement income. But here’s the thing: while they’re pushing annuities, they’re still only offering a limited lineup. That means if you’re working with them, you might be getting a good product—but not necessarily the best one available.

This is especially true when it comes to Deferred Income Annuities (DIAs) and Guaranteed Lifetime Withdrawal Benefits (GLWBs). Each has pros and cons, and which one is right for you depends entirely on your goals. Fidelity might offer one or the other—but they’re not explaining the differences clearly.

Chart: Comparing DIA vs. GLWB for Retirement Income

FeatureDeferred Income Annuity (DIA)Guaranteed Lifetime Withdrawal Benefit (GLWB)
Income Start DateDelayed (often 5–15 years)Flexible; withdrawals can start at retirement
Payout CertaintyHigh (fixed payments, known period)Moderate to high (varies with market)
Market ExposureNoneOften tied to an indexed or variable annuity
Death BenefitsOptional, usually limitedOften includes benefit base or return of premium
FlexibilityLowHigher (can access more if needed)
Table comparing Deferred Income Annuity (DIA) vs. Guaranteed Lifetime Withdrawal Benefit (GLWB) for retirement income planning.

“You Don’t Need an Annuity, But You Might Want One”

Let’s be clear: nobody needs an annuity. You can absolutely retire without one. But if the goal is peace of mind, guaranteed income, or a conservative hedge against market swings—then an annuity might just make your life a whole lot easier.

In the past year, I’ve worked with people in their 40s and 50s who are buying income products because it simply makes financial sense. It’s not about pushing a product—it’s about finding a solution that actually fits the plan.

What the Fee-Only Crowd Isn’t Telling You

Some fee-only advisors love to take shots at annuities, often because they can’t (or don’t want to) sell them. That doesn’t mean annuities are bad. In fact, many of those same advisors are quietly warming up to the idea—because they’re realizing what Fidelity already has: when used correctly, annuities reduce risk, increase stability, and provide predictable income.

In some cases, I’ve been able to offer annuity options that outperform what Fidelity or Schwab are offering by 20–25%. Other times, I can only beat their offer by a few percentage points—which speaks to the quality of the deal they’ve put on the table. If the client already has a strong relationship with their advisor, I’ve told them: go ahead and stick with it. It’s a solid option.

For a detailed comparison of what Fidelity is offering versus the open market, see Fidelity Annuity Recommendations.

Fidelity’s Annuity Push: Then vs Now

The industry is evolving, and so is Fidelity. Their approach today is a far cry from the anti-annuity days of old. Now, annuities are front and center in their planning materials—often in the top three strategies they promote. That’s not an accident. It’s a recognition that guaranteed income plays a critical role in a well-rounded retirement plan.

If you’re hearing mixed messages—some advisors saying avoid annuities at all costs, others recommending them heavily—you’re not alone. But that’s exactly why getting a second opinion matters. Every retirement plan is different, and no single product is the answer for everyone.

Last Updated on April 7, 2025 by Bryan Anderson