What type of risk is associated with annuities?

There are a number of risks associated with annuities, and these risks often depend on the type of annuity (for example whether it is a fixed annuity or variable annuity). Some of these include:

1) Credit risk

2) Interest rate risk

3) Market risk

4) Inflation risk

5) Deflation risk

6) The risk of receiving poor advice and purchasing the wrong type of annuity for your situation

7) The risk of purchasing an annuity with very high fees