How much can you withdraw from an annuity without a penalty?

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September 15, 2026 / 12:27 PM EDT / CBS News

Annuities are designed to turn savings into income over time, but your financial needs may not always follow the schedule you had in mind when you bought one, particularly once you've stopped working. All it takes is an unexpected home repair, a large medical bill or another unplanned but major expense in retirement to leave you looking for a way to access some of the annuity money you've accumulated.

With many people's budgets under major pressure in today's economic landscape, which is dotted by high inflation, elevated borrowing rates and rising consumer goods costs, having access to that cash can be quite valuable. But taking money from an annuity isn't necessarily as simple as requesting a withdrawal from the account. Depending on your annuity contract, the timing and size of the withdrawal can determine whether you lose a portion of it to fees.

So, before tapping an annuity for cash, it helps to know exactly how much you can withdraw without triggering added costs. That's what we'll outline below.

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Original source: https://www.cbsnews.com/moneywatch/