Fixed Annuities Cannot Match Stock Market Returns—Here's Why

MarketWatch examined a steak-dinner seminar claim that annuities beat the stock market's historical 8–10% annualized returns. The verdict: fixed annuities cannot. Insurers set guaranteed rates by investing in bonds, subtracting fees and profit margins. With 10-year Treasuries well below long-run equity returns, the arithmetic makes 8–10% net gains impossible. Fixed annuities offer downside protection and income—valuable for retirement spending, not as equity substitutes.