Seven years ago, when Alice Bouchard was 85 and needed her money to be easily accessible, an insurance agent sold her a deferred annuity that tied up her money until she was 101. If she had needed to withdraw the money during the first five years after buying the annuity, she would have paid a massive 25% surrender charge.

And if that weren't bad enough, the agent paid Bouchard regular annual visits and persuaded her to sell the annuities she had purchased in past years and buy new ones. Each time, she had to pay surrender charges. Then, she says, without her knowledge the agent began shifting money to other family members after she reached 90 (the maximum age at which you can buy an annuity from most companies).