You planned your retirement with financial security in mind, but maybe you planned a little too well. Perhaps your financially looking better in retirement than you ever would have thought, and you no longer need the payments from your annuity policy but could really use that lump sum in cash for a pet project, perhaps a retirement home, luxurious cruise, or a vacation get-away spot in Hawaii. Until recently, you really had no options for selling annuity. You were pretty much stuck with it. If you hadn’t retired yet but still wanted to sell, you were forced to pay steep surrender fees to be able to cash out.

Luckily, that’s changed. A nascent secondary market for selling annuity has emerged, allowing individuals to sell what used to be unsalable or cash in their policies for larger payments than insurers would otherwise give them. It’s been estimated that almost 10 percent of annuity holders would cash out if they could without severe penalties.

Really, it makes so much sense the only wonder is why it hasn’t happened sooner. There are few products you make that require you to own them for life, aside from children or family heirlooms. But like any product, the decision to ante up and cash out needs to be weighted very carefully as the chips and stakes are sky high.

Should you actually sell? Usually, your decision to originally purchase annuity was made very carefully. Annuities have become very popular because they provide a guaranteed steady amount of income after retirement. Although you may be fixed on the amount of payments, the money is a regular stream of income you can depend on. Do you rely on it primarily for your income? Even if you do, selling may still be a good idea, providing that you participate in markets that will have a higher rate of return than your annuity. It’s important to ask yourself, are those products as safe as your annuity?

If your annuity income isn’t critical or you’d be better able to use it in a lump sum, selling your annuity may be the best financial planning. If you are doing well in your retirement, there are probably better ways to devote the money, such as a dream retirement home on the beaches of Maui.