A straight answer

Are annuities a good investment?

Sometimes. A fixed annuity is a good investment if you want a guaranteed income floor you cannot outlive and will hold it to term. It is a poor one if you need liquidity or the highest yield, because a new annuity is capped at the insurer's bond return minus their spread. Here is how to tell which case you are in, and the higher-yield alternative if yield is the goal.

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When an annuity is a good investment

You want a guaranteed income floor you cannot outlive, and predictability matters more than growth.
You are past the accumulation years and want to convert a lump sum into steady payments.
You value the insurer's guaranty-association backstop and are willing to trade yield for it.

When it is the wrong call

You need the money accessible; surrender charges lock it up for years.
You are chasing the highest yield; new annuity rates are capped by the insurer's spread.
You are still decades from drawing income and can accept market risk for growth.

If yield is the goal

The higher-yield alternative

If the only reason you are looking at annuities is a guaranteed fixed yield, there is a better-priced version of the same idea. Secondary-market payment streams are funded by the same top-rated carriers that back new annuities, but you buy an existing schedule at a discount rather than a new contract. That discount becomes your estimated yield, currently up to 8.50%.

The honest trade: these are payment rights, not annuity contracts, so they have limited liquidity and are generally not covered by guaranty associations. There is no daily market, though resale or reassignment may be possible with our assistance at a price that is not guaranteed. They suit money you will not need for years, not an emergency fund. We lay out exactly what you own on our page about whether a secondary market annuity is actually an annuity, and compare it head to head with CDs, Treasuries, and new annuities.

Questions investors ask before buying

Are annuities a good investment for retirees?

For a retiree who wants a guaranteed income floor they cannot outlive, a fixed or immediate annuity can be a good fit, because it converts savings into predictable payments backed by an insurer. It is a weaker fit if you need liquidity or the highest possible yield. Many retirees split the difference: an annuity or bond ladder for the safe base, and a higher-yielding sleeve for the money they will not touch for years.

Are fixed annuities a good investment right now?

Fixed annuity rates in 2026 sit around 5 to 6 percent, which is competitive with CDs and offers tax deferral, so they are reasonable for guaranteed-income buyers. The ceiling is the catch: a new annuity credits the insurer's bond return minus their spread, so the rate cannot climb much higher. Investors who want more fixed yield and can lock the money up look to secondary-market payment streams instead.

What is the downside of an annuity?

The main downsides are liquidity and cost. Surrender charges tie the money up for years, some products layer in fees and riders that obscure the real return, and the yield is capped by how the insurer invests. Those trade-offs are fine if you specifically want guaranteed income and will hold to term, and a poor fit if you might need the cash or want to maximize yield.

What is a higher-yielding alternative to an annuity?

Secondary-market payment streams are funded by the same top-rated carriers that issue annuities, but you buy an existing schedule at a discount, so estimated yields run about 4 to 7 percent. They are payment rights, not annuity contracts, they have limited liquidity, and they are not covered by guaranty associations. There is no daily market, but resale or reassignment may be possible with our assistance at a price that is not guaranteed. See current yields on our inventory or talk with our team at (800) 449-6311.

What these assets are, and what they are not

Guaranteed and life-contingent structured settlement payment rights, and lottery payment rights, represent the right to receive factored payments that Pacific Structured Assets purchases and assigns to investors through a court-approved process. They are purchased at a discount to their total scheduled payments.

These payment rights are NOT annuities, NOT insurance products, and NOT securities registered with the U.S. Securities and Exchange Commission. They are not bank deposits, are not FDIC-insured, and are not protected by any state insurance guaranty association. The industry term “secondary market annuity” refers to these payment rights and does not mean you are purchasing an insurance annuity contract.

You acquire the right to receive the payments, not the underlying annuity. The annuity itself does not change hands. Unlike the original structured settlement annuity, which may be shielded from creditors under applicable law, the assigned payment rights you purchase generally do not carry that creditor or bankruptcy protection.

Assigned annuities, offered as a separate product line, are existing insurance annuity contracts reassigned to a new owner through a change of ownership or an irrevocable change of payee.

These are long-term holdings with limited liquidity, and may not be suitable for every investor. There is no public trading market and no daily price. Resale or reassignment of a payment stream to another buyer may be possible, and Pacific Structured Assets can assist, but a resale is not guaranteed and the price it would bring is not guaranteed. Because the payments are fixed, that resale value moves with prevailing interest rates: an investor could realize a gain if rates have fallen since purchase, or a loss if rates have risen. These holdings are best suited to capital an investor can commit for the long term. Nothing on this website is tax, legal, financial, or investment advice. Consult your own advisors before investing.

Pacific Structured Assets, Inc. does not provide tax, legal, financial or accounting advice. The material on this website has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial or accounting advisors before engaging in any transaction, including the acquisition of factored structured settlement payments. Pacific Structured Assets is not registered with the Securities and Exchange Commission and is not licensed to sell insurance in any state.

Pacific Structured Assets

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