Recently, most annuties had a 5% "return" (not the right word). Not too good with 7% inflation.
This, aside from all the issues with fees, gotcha clauses and low returns in general, is the core of the problem. Fixed annuities in a inflationary environment. If you go with a variable annuity, then you give up about a third of the expected return for what is only a perceived safety factor over longer periods.
