Warren Buffett has been critical of most annuities, particularly those sold with high commissions and fees. He has argued that many annuities benefit the salespeople and insurance companies more than the buyer, since heavy fees erode returns over time.
Buffett generally favors low-cost index funds over annuities for most investors, believing they offer better long-term growth without the drag of hidden charges.
He’s also cautioned that annuity contracts can be complex and hard for average consumers to evaluate, making it easy to end up in a product that doesn’t serve their interests. His overall stance: be skeptical of anyone pushing an annuity, and understand exactly what you’re paying for before buying one.