I'll address several reasons in my next column, but before I end this one I'll mention one of the more popular scapegoats. Clients often say they eschew annuities because of the compensation financial advisors, consultants and planners receive for these products. There are some unethical people who don't do the best thing for their clients, but I'm skeptical that this ought to be as big a factor in the decision as it is.

Advisors, meanwhile, supposedly will not recommend annuitization because they will no longer have a lump sum to base their fees on or generate future commissions. But most advisors I know don't recommend against actions that could reduce the money they end up managing, such as paying off high-interest debt, gifting to family or making charitable contributions.

The lack of availability to funds affects clients far more profoundly than it does advisors. I'll have much more to say about this lack of availability next month, as it is one of many reasons clients reject these products.

Dan Moisand, CFP, is one of America's top independent financial advisors. He has spoken to advisor groups on five continents on topics such as managing investments and navigating tax complexities for retirees; retirement readiness; and most topics relating to the development of the financial planning profession.  He practices in Melbourne, Fla. You can reach him at [email protected]