A retirement annuity (or RA) is a pension fund for individuals, and one of the ways to save for retirement. In principle, it is a voluntary, tax-efficient savings tool to help you achieve a comfortable retirement. However, if you are not vigilant in your choice of RA and the related costs, it can easily become an inflexible money trap that delivers low returns, high fees and stiff penalties. This is according to Tracy Jensen, Chief Product Architect at 10X Investments , who says that the problem does not lie with the RA itself. “This is just the legal “wrapper” that affords you certain tax benefits. The overall return on your investment depends on how your money is invested, the associated costs, and any penalties associated with your choice of service provider. If you are concerned about the state of your current RA, it might be time to evaluate your choice.” According to Jensen, investors need to at least be asking the following questions about their current RA’s: 1.  ...