Financial advisors often dislike annuities for a mix of practical and ethical reasons. First, fees: annuities can carry high commissions, surrender charges, and ongoing administrative costs that eat into returns, and advisors may not want to recommend products that cost clients more than simpler investments like index funds.
Second, complexity: annuities are often hard to understand, making it difficult for clients to make informed choices. Third, liquidity: money is often locked up for years, with steep penalties for early withdrawal.
Finally, conflicts of interest exist since annuities can pay advisors large commissions, so many fee-only advisors avoid them to prevent bias, favoring lower-cost, more transparent investment options that better serve long-term client goals.