Which factor can influence the fees associated with annuities?

The length of time an annuity is held is a significant factor that can influence the fees associated with it. Annuities often come with various charges and fees, such as mortality and expense risk charges, administrative fees, and surrender charges. These fees may be structured in such a way that they decrease over time, meaning that the longer an annuitant holds onto the annuity, the lower the annual fees might become in relation to the investment. Additionally, if an annuity is surrendered before a certain period, surrender charges may apply, further emphasizing how the duration of ownership can impact overall costs. Understanding how the fees are assessed based on the time horizon of the annuity is crucial for clients when deciding on an annuity that best fits their financial strategy.

Other factors like a client’s nationality or general market conditions do not have a direct impact on the fees for a specific annuity product, while a customer's age and experience may influence the type of annuity they choose but not specifically the fees associated with the annuity itself.