what are the disadvantages of a deferred annuity 
prospective buyers should also be aware that annuities often have high fees compared to other types of retirement investments including surrender charges they are also complex and sometimes difficult to understand most annuity contracts put strict limits on withdrawals such as allowing just one per year withdrawals may also be subject to surrender fees charged by the insurer in addition if the account holder is under age 59 they will generally face a 10 tax penalty on the amount of the withdrawal that s on top of the income tax they have to pay on the withdrawal 1