The main complaint that I hear about annuities is the about the surrender charges. A close second is the higher fees. Each can be equally as bad if you are not invested properly. Most of the time, these complaints come from people that are invested in unsuitable annuities.
The suitability of an annuity is complicated subject that is constantly evolving. Insurance companies have implemented certain basic rules to make sure that each new annuity owner meets certain requirements but it is not enough. Insurance agents are the next step. To offer annuities to clients a person must be insurance licensed making them an insurance agent. Even if they call themselves a broker, invest advisor, or something else they have to be an insurance agent as well to be able to offer annuities.
Agents are supposed have the knowledge to be able to further ascertain if the annuity suitable for each new client. For instance, surrender charges are rarely a problem if careful income planning is completed before investing. Unfortunately, not all agents are created equal. Some do a great job and some do not.
That is why reading up on annuities like you are doing right now is such a good idea. You are the final step in the suitability process. For instance, higher fees may not be a problem for you because with an annuity you can get a principal guarantee to protect from losses like you experienced over the last few years. You can learn ins and outs of annuities. It is especially important if you are investing in annuities in your 401k or other business retirement plan.
To learn more about the potential downfalls of your annuities in your business retirement plan read - Potential Downfalls Of Annuities In Business Retirement Plans
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