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Best Annuity Rates: Find the Right Annuity Provider for Your Retirement

Annuity rates are the percentage your annuity grows each and every year. Whether you’re still in the planning stages or have just recently retired, yo...

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This story originally appeared on Due

Annuity rates are the percentage your annuity grows each and every year. Whether you’re still in the planning stages or have just recently retired, you’re probably concerned about being able to cover your living, healthcare, and medical expenses. You’ve also probably had many sleepless nights worrying whether you’re going to outlive your savings or not. While all retirement concerns are valid, there might be a rare one-fix solution to put your mind at ease. And, it’s through an annuity. The key is finding the right annuity for you. Here are the best annuity rates on the market.

Due via Due

Annuities are insurance contracts. They provide a guaranteed lifetime income and protection against losing your initial investment. You may be able to use an annuity to assist you with your long-term costs too. And, you can leave the balance to heirs.

Unfortunately, many people aren’t taking advantage of annuities. Maybe it’s because they’re overwhelmed by them — or overwhelmed by all things about retirement. And, that’s a fair point. After all, annuities come in a variety of flavors — just like ice cream.

For starters, an annuity rates can be either immediate (begin paying out now) or deferred (being paying out at a later date). Additionally, they might fall into the following annuity types;

  • Fixed annuities promise to pay you a guaranteed interest on your contributions. Rates are often based on the current interest environment. Overall, a fixed annuity is the most straightforward and predictable. 
  • Fixed indexed income annuities also offer principal protection like a traditional fixed annuity. However, there is upside potential through index participation (such as S&P 500). Principal protection and growth.
  • Multi-year guaranteed annuities (MYGA) offer a fixed rate of return, but for a specified period of time.  
  • Variable annuities are tied to an investment portfolio. So, payments can increase when the market is performing well and decrease when it’s not. You can expect higher returns, but there’s more risk involved. 
  • Registered index-linked annuities are relatively new and are tied to the stock market index. Gains are capped and losses are limited.

What to look for when buying an annuity?

Are you feeling comfortable enough with annuities now that you want to buy one? If so, you’ll want to keep the following in mind so that you’ll get the most out of the annuity.

Pick the right type of annuity for you.

If you’re allergic to peanuts, then you should stay far away from peanut butter ice cream. It’s kind of the same thing with annuities. If you’re already in retirement, then a deferred variable annuity probably doesn’t make much sense. Select the annuity that best aligns with your retirement plan and doesn’t exceed your risk threshold. 

Check the annuity rates and terms.

Before committing to a contract, carefully review the rates and terms. It should be clearly stated when you can access your money, how much you’ll be receiving, and the fees associated with the annuity. For example, if you withdraw any money before you’re permitted, you’ll be subject to surrender charges. 

Choose your salesperson wisely.

Since your broker has to put food on the table, they’ll earn a commission from annuity sales. Often, these costs aren’t disclosed. Find out how much they’re making off the sale. And, more importantly, that they’re not selling the wrong annuity just to cash in on a commission. 

Select a financially strong insurance company.

Annuities aren’t backed by institutions like the FDIC. They’re also supposed to last you a lifetime. As such, you need to make sure that you’re working with an insurance company that’s in it for the long haul. You can make sure that they’ve received a high rating from third parties like A.M. Best, Moody’s, Standard & Poor’s (S&P), and/or Fitch, etc.

Some other considerations? How easy it is to sign up and fund the annuity, as well as access your money. Customer service and what you expect your payments to be should also be factored in. Also, look at the interest rates for payout.

But, since your time is valuable, we’ve gone ahead and listed the 25 best annuities that you should purchase. Each has met the criteria above. And, we’ve even broken the list down into the best fixed, fixed indexed growth, MYGA, variable, and registered index-linked annuities so that you can quickly find the right type of annuity for you.

BEST OVERALL ANNUITY RATE

Due

Simple overall annuity, No hidden fees, 3% annual growth

You earn 3% on every dollar invested. And, this rate is guaranteed for life — regardless of what happens with the economy.
Capterra
4.7/5

Minimum Initial Requirement

$0

Annual Fee

$0

Guaranteed Rate of Return

3%

Type of Annuity

Fixed Deferred

Why We Picked It

Unlike other fixed annuities, Due doesn’t reel customers in with a favorable teaser rate. You’ll get a 3% return that’s guaranteed for life. No exception. They can do this because they go direct to the consumer vs paying out insurance brokers that have high fees. A fixed annuity rate creates a predictable retirement income, which makes it easier to budget. Also, it only takes a couple of minutes to apply online.

Pros & Cons

Annuity Details

  • Earn 3% interest on every dollar that you contribute annually for a paid account -- 1% if you have a free account. 
  • Pays out until death
  • Can be passed to a beneficiary 
  • Funds are managed by two of the top investment firms in the nation; Blackstone (NYSE: BX), and ATHOS Private Wealth.

Income growth rate that customers love

A single premium annuity allows you to convert a lump sum of money, like insurance proceeds or a retirement package payout, into a recurring income. The SPIA from American National can provide a steady stream of income payments so that you can reach your goals and cover your basic needs

Minimum Initial Requirement

$0

Annual Fee

$0

Guaranteed Rate of Return

5.30%

A.M. Best Rating

A

Type of Annuity

Fixed Immediate

Why We Picked It

This annuity is ideal if you’re concerned about outliving your income or market risk. It’s also useful if you don’t have a pension, need an income now, and want to generate an income in a low-rate environment.

Pros & Cons

Annuity Details

  • The guaranteed rate of return you’ll currently receive is a competitive 5.30%
  • You can take partial withdrawal 
  • This is a fixed immediate annuity meaning that you have built-in stability and you can receive payments right away. 

Amazing annuity riders for customers

Jackson is known for being transparent. It’s annuity is designed for long-term investors with a timeframe of seven or more years. Jackson’s version of the income rider benefit typically receives an annual bonus guarantee of 7%

Minimum Initial Requirement

$10,000

Annual Fee

$0

Guaranteed Rate of Return

Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A

Type of Annuity

Fixed Deferred or Immediate

Why We Picked It

With this annuity you’re guaranteed growth, while also having protection from any economic uncertainty. And, unlike other annuities, if you’re facing health hardships, such confinement to a nursing home or hospital or diagnosis of a terminal illness, surrender charges are waived.

Pros & Cons

Annuity Details

  • Receive a competitive interest rate guaranteed by a strong insurance company
  • You can begin partial withdrawals immediately
  • You decide when and how to take your protected income
  • Tax-deferred
  • You have free access to the contract value if used for a health hardship

Index Variable Annuity above all others

The interest rate on this annuity might be on the lower end, the Interest Opportunity Rider (IOR) does allow for more interest-earning potential. Also, the issue age for this annuity is 90 years old.

Minimum Initial Requirement

$10,000

Annual Fee

$0

Guaranteed Rate of Return

.05%, Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A++

Type of Annuity

Fixed Deferred

Why We Picked It

A perfect annuity if you want to add a “bond” ladder to your portfolio as you’ll receive a guaranteed specific interest rate -- depending on the term that you choose from 3-7 years. At the end of the term, the rate will be set on an annual basis that you can accept or surrender

Pros & Cons

Annuity Details

  • The minimum rate guarantee is 0.05% and the maximum is 5%.
  • The interest rate is based on the time period you select and how much your premium is
  • Also included is the Enhanced Beneficiary Benefit Rider for a 0.30% annual fee
  •  

BEST TAX-DEFERRED ANNUITY RATE

Easy tax-deferral with Fidelity annuity

Is one of the largest asset managers in the world known for an excellent selection of low-cost mutual funds, as well as brokerage services. Divides its six annuities into three classes: retirement, asset protection, and income generation.

Minimum Initial Requirement

$5,000

Annual Fee

$0

Guaranteed Rate of Return

Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A-

Type of Annuity

Fixed Deferred

Why We Picked It

What makes this annuity product stand out is that there are two riders available if you open it before the age 75: the Nursing Care Rider and the Terminal Illness Rider. The former allows you to withdraw 100% of your contract value, after your third contract anniversary, penalty-free, if you're confined to a nursing home. The latter will let you withdraw your full contract value without penalty if you have a terminal illness.

Pros & Cons

Annuity Details

  • Fixed annuity rate up to 1.75% for American Equity’s GuaranteeShield 3 Fixed Annuity 
  • Maximum premium amount is $1,500,000.00
  • 15-day free look period

BEST CUSTOMER SERVICE ANNUITY

Customers rave about customer service

The Assured Edge Income Builder is a low risk, lifetime retirement income alternative that comes equipped with benefits like income growth advantage, asset value stability, and flexible and penalty-free withdrawals

Minimum Initial Requirement

$25,000

Annual Fee

$0.95% annual fee

Guaranteed Rate of Return

Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A

Type of Annuity

Fixed Indexed

Why We Picked It

First, this fixed annuity promises a guaranteed lifetime income amount (GLIA). This will increase based on a 7% income growth rate annually until you begin receiving payments. Second, the flexible guaranteed withdrawal benefit (GLWB) guarantees a lifetime income while also taking care of the escalating retirement costs

Pros & Cons

Annuity Details

  • You can open the annuity as early as age 50
  • The annuity can be opened either as an individual or joint account
  • Automatically includes a GLWB -- annual fee of 0.95%
  • Allows up to 10% withdrawals during the first 10 years of the contract

BEST COMPOUNDING ANNUITY RATE

Nice compounding interest rates in beginning years

The Nationwide New Heights 9 fixed indexed annuity is a 9-year annuity that tracks your potential strategy earnings (also known as earnings) daily, while also protecting your money from market risk.

Minimum Initial Requirement

$25,000

Annual Fee

$0

Guaranteed Rate of Return

2% - 5%

A.M. Best Rating

A

Type of Annuity

Fixed Indexed

Why We Picked It

You will never lose any of your initial investment or credited earnings due to the performance of the underlying index. Also, because your Balanced Allocation Value (BAV) is tracked daily, this makes it easier to lock in the index value.

Pros & Cons

Annuity Details

  • Single purchase, deferred fixed indexed annuity
  • Returns are based changes in an underlying index, such as the S&P 500
  • Optional riders to customize your contract, such as a joint option that guarantees lifetime payments to your spouse

BEST CASH-OUT OPTIONS ANNUITY

Flexible annuity cash-out rates for better tax flexibility

Protective Life describes the Indexed Annuity II as “the right choice if you want to benefit from the features of an annuity and desire protected lifetime retirement income and asset protection with the potential for higher returns linked to the performance of a market index.”

Minimum Initial Requirement

$10,000

Annual Fee

$0

Guaranteed Rate of Return

Varies depending on premium amount, current interest rates, and contract type

A.M. Best Rating

A+

Type of Annuity

Fixed Indexed

Why We Picked It

You have the ability to earn either a fixed interest rate or an indexed rate that’s linked to the annual return of the S&P 500 Index. Indexed rates are credited either on a capped point-to-point annual basis or on a tiered annual basis.

Pros & Cons

Annuity Details

  • Can chose between a 5-year or 7-year contract
  • Issue ages for qualified contacts are 18-85
  • You can withdraw 10% of the contract value annually
  • Penalty-free access to your money if you become unemployed, terminally ill, or confined to a medical care facility for at least 30 consecutive days.

BEST LOCK IN RATE ANNUITY RATES

Allows you to lock-in your annuity rate

You can choose between a 5, 7, or 10 year contract. Each comes with a guaranteed fixed-rate period, depending on the length, that will earn a certain fixed rate. The indexed portion will hold funds that are based on the performance of the index you select.

Minimum Initial Requirement

$25,000

Annual Fee

$0

Guaranteed Rate of Return

Varies depending on how much and when you invested, the amount you allocate to your fixed and indexed accounts, chosen index, and the performance of the market

A.M. Best Rating

A

Type of Annuity

Fixed Indexed

Why We Picked It

The main selling point with the ForeIncome II annuity is the inclusion of the Guaranteed Lifetime Withdrawal Benefit (GLWB). This gives you a chance to boost your payouts in two different ways. The first is the Guaranteed Income Builder Benefit that will increase your withdrawal base by a flat 8%. The second is the Income Multiplier Benefit where your interest credits will be multiplied by two.

Pros & Cons

Annuity Details

  • Must be between the ages of 45 and 85
  • Can take out as much as 10% of the contract value each year without getting penalized 
  • Returns vary by contract

BEST SIX-YEAR ANNUITY RATE

Six-year term above all others

Contains a fixed interest account for predictability, as well as an index-following account for growth. This annuity offers a choice of four different index strategies; the 1 Year S&P 500 5% Daily Risk Control Spread, the 1 Year S&P 500 Performance Triggered, the 1 Year S&P 500 Cap and the 1 Year S&P 500 Participation.

Minimum Initial Requirement

$10,000

Annual Fee

$0

Guaranteed Rate of Return

Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A+

Type of Annuity

Fixed Indexed

Why We Picked It

Getting the best both worlds, principal protection and growth opportunity, is appealing. What separates this annuity is the choice from a 5-year, 7-year or 10-year term, the remaining value of the contract can be passed to beneficiaries, and there are no annual or rider fees.

Pros & Cons

Annuity Details

  • Each contract term has a different initial guarantee period for your fixed rate
  • Maximum issue age is 80
  • Optional benefits that provide protected income for life

BEST BENEFICIARIES ANNUITY RATES

Great annuity for beneficiaries

While you can earn interest at a fixed rate with this annuity, the selling point of benefit riders annuitants including Required Minimum Distribution, Preferred 10% Free Withdrawal, Terminal Illness/Nursing Home Care, 72(t) Free Withdrawal, Death Benefit Feature, and Accumulated Interest Withdrawal.

Minimum Initial Requirement

$2,500

Annual Fee

$0

Guaranteed Rate of Return

3.20%/10 yrs

A.M. Best Rating

B++

Type of Annuity

Multi-year

Why We Picked It

In addition to being considered a premier annuity, it’s the riders that make this annuity worth considering as they make it fully customizable and flexible.

Pros & Cons

Annuity Details

  • Similar to a CD, the longer you lock your money up the better the interest rate
  • Available in five, seven, or ten year durations to fit your needs
  • Riders not available in all 50 states

BEST LONG TERM INDEX ANNUITY

A.M. Best Rated

One of the most favorable interest rates available on the market. As of this writing, 3.30% for a 20-year contract.

Minimum Initial Requirement

$2,500

Annual Fee

$0

Guaranteed Rate of Return

3.30%/20 yrs

A.M. Best Rating

B++

Type of Annuity

Multi-year

Why We Picked It

In addition to the competitive interest rate and protection on your principal, you have several income options. First, you can renew your contract at the end of the initial guarantee period. Second, convert your annuity into a stream of retirement income payments

Pros & Cons

Annuity Details

  • Compound Level Rate: 3.30%
  • Optional riders including; Preferred 10% Free Withdrawal - 0.15% interest reduction Death Benefit Feature - 0.25% interest reduction Accumulated Interest Withdrawal - 0.05% interest reduction 
  • Issue ages: 0 to 75: 20 year guarantee period.

BEST MULTI-YEAR ANNUITY RATES

No limit to index performance

A 7-year fixed annuity that provides a guaranteed interest rate that’s competitive with CD rates in order to grow your retirement savings.

Minimum Initial Requirement

$2,500

Annual Fee

$0

Guaranteed Rate of Return

Up to 3.25%/7 yrs

A.M. Best Rating

B++

Type of Annuity

Multi-year

Why We Picked It

As with annuity companies like Due, Canvas is using technology and transparency to remove the stigma involving annuities, as well as making it simple and stress-free to plan for tomorrow.

Pros & Cons

Annuity Details

  • Issue age 18-90 years old
  • Penalty-free withdrawals -- 10% of acclamation value annually 
  • Guaranteed crediting rates and low commissions

Annuity for groups

A fixed indexed annuity that provides safety and security where gain are linked to a positive change in a market index.

Minimum Initial Requirement

$20,000

Annual Fee

$0

Guaranteed Rate of Return

3.10%/10 yrs

A.M. Best Rating

A-

Type of Annuity

Multi-year

Why We Picked It

For individuals or couples, this annuity will protect your hard-earned money against market volatility while also securing a guaranteed retirement income. At the end of the term, you can apply for a new Contract Guarantee Period of choice, take a partial withdrawal, or 1035 Exchange Full.

Pros & Cons

Annuity Details

  • Issue age; 0 to 89
  • Minimum withdrawal amount; $250
  • 20-day free look period
  • Market value adjustment

BEST MANAGED VARIABLE ANNUITY

Highly rated variable annuity plan

The company offers a fixed deferred, variable, and single premium immediate fixed annuity at a low minimum cost to invest.

Minimum Initial Requirement

$5,000 - $1,000,000

Annual Fee

$0

Guaranteed Rate of Return

3.10%/6 yrs

A.M. Best Rating

B+

Type of Annuity

Multi-year

Why We Picked It

The competitive rate compared to CD is appealing, but what makes this annuity standout is that it only takes a couple of minutes to apply using the Nassau Simple Annuity iOS app.

Pros & Cons

Annuity Details

  • Purchase the annuity with a single premium payment 
  • An annual withdrawal of up to 5% of your contract value
  • Nursing home and terminal illness waivers
  • Seven different annuity payment options to choose from
  • Available spousal continuation

Set interest rates for a year, 5-year, 7-year or 10-year surrender charge schedule

Barron’s has recognized this as a Top Variable Annuity because it’s a low-cost deferred variable annuity. It also allows you to increase your tax-deferred retirement savings well beyond the contribution limits of an IRA or 401(k).

Minimum Initial Requirement

$10,000

Annual Fee

0.25% for contracts purchased with an initial investment of less than $1 million (or which have not yet accumulated $1 million)

Guaranteed Rate of Return

Dependent on what you choose to invest in

A.M. Best Rating

A-

Type of Annuity

Variable

Jackson National Life Perspective II

What makes this annuity so intriguing is that it’s extremely customizable on how you want to approach the annuity in order to meet your goals. This is possible through either a hands-off, hands-on, or sector investing approach.

Pros & Cons

Annuity Details

  • Fidelity offers three different investing styles
  • Unlike other variable annuities that charge a combination of an annual contract fee and mortality and expense risk charge, fees are based on the amount of assets that are invested in your annuity
  • As of Feb. 2021, the various funds offered for this annuity found five-year earnings ranging from -6.45% to 30.67%

BEST FIXED ANNUITY INDEX RATES

Multi-year guarantee annuity

A tax-deferred variable annuity that lets owners build their own investment portfolio. It’s because of this customization, the Perspective II annuity is becoming an increasingly popular annuity product.

Minimum Initial Requirement

$5,000

Annual Fee

$35

Guaranteed Rate of Return

Varies on the contents of your portfolio

A.M. Best Rating

A

Type of Annuity

Variable

Why We Picked It

Through numerous partnerships, you have the ability to diversify your investments on a large scale, across classes including U.S. equities, international equities, alternative securities, bonds, and money markets. In fact, you have over 110 different investment choices in your portfolio at once. And, you’re also permitted to make up to 25 transfers a year free of charge.

Pros & Cons

Annuity Details

  • Maximum issue age of 85
  • For the first 7-years of the annuity withdrawal charges start at 8.5% and subsequently drop to 7.5%, 6.5%, 5.5%, 5%, 4% and 2%
  • Earnings are taxable as ordinary income when distributed

BEST INCOME ANNUITIES RATE

Best income annuities provider in America since 2006 by LIMRA

A low-cost, only $1,000 is needed to get started, five-year surrender charge. That means surrender charges start out at 5% and subsequently decrease to 4%, 3%, 2%, and 1%.

Minimum Initial Requirement

$1,000

Annual Fee

$35

Guaranteed Rate of Return

Dependent on your investment decisions the performance of those investments

A.M. Best Rating

A

Type of Annuity

Variable

Why We Picked It

A simple and straightforward variable annuity that offers tax-deferred growth along with investment options for growth opportunities.

Pros & Cons

Annuity Details

  • Issue ages 0 - 90
  • Annuitization is permitted after the 3rd policy anniversary allowing for guaranteed lifetime payments through a variety of payment schedules
  • Not taxed until after money is taken out of the annuity account

Never missed an annuity payment in 160 years

Minimum Initial Requirement

$10,000

Annual Fee

$40 annual contract maintenance fee

Guaranteed Rate of Return

Dependent on your investment decisions the performance of those investments

A.M. Best Rating

A++

Type of Annuity

Variable

Why We Picked It

The most glaring feature is the free automatic investment plan (AIP). This allows for regular transfer of funds from any of your accounts to the annuity contract. There’s also an option to join the automatic rebalancing program that will assist in maintaining your original asset allocation

Pros & Cons

Annuity Detail

  • Maximum issue age 90 
  • Flexible payment choices ranging from income for life to payments for a specific period.
  • Payments begin 5 years after the contract is issued

$10,000 upfront with no annual contract fees

You can create your own set of diversified investments so that you’ll have a guaranteed income for life — no matter how long you live. You can choose between prebuilt portfolios or individual investment options.

Minimum Initial Requirement

$10,000

Annual Fee

$30

Guaranteed Rate of Return

Dependent on your investment decisions the performance of those investments

A.M. Best Rating

A

Type of Annuity

Variable

Why We Picked It

A “benefit base” is used to determine future distributions. Until then, it’s compounded by 5% annually for the first 10-years of the contract. You also have the option between “Level,” (same payments for the lifetime of your contract) or “Expediate” which are front-loaded.

Pros & Cons

Annuity Details

  • Maximum issue age is 85
  • Can weather unpredictable conditions by either choosing asset allocation portfolios or individual investment options 
  • Can capture market gains via Automatic Step-Ups
  • You can take either 6% or 4.75% withdrawals at age 65
  • Spousal income continuation 

BEST INDEX-LINKED ANNUITY RATE

$10,000 upfront with no annual contract fees

“Athene Amplify, our first registered index-linked annuity, is designed to become a preferred accumulation solution for investors seeking more participation in market gains while managing their downside risks,” said Grant Kvalheim, CEO and President of Athene USA. “Amplify is a versatile vehicle for asset accumulation that allows consumers to remaster investing on their own terms. It’s a natural addition to our Athene family of fixed and fixed indexed annuity solutions and reflects our commitment to satisfy evolving consumer needs as they plan for retirement.”

Minimum Initial Requirement

$10,000

Annual Fee

0.95% annual Segment Fee

Guaranteed Rate of Return

No guaranteed fixed interest rate

A.M. Best Rating

A

Type of Annuity

Registered

Why We Picked It

Amplify differentiates itself by both offering “Buffer (protection down to a specified percentage of index decline) and Floor (protection below a specified percentage) Segment Options.” And, there are also 1, 2 and 6-year Segment Term Periods available.

Pros & Cons

Annuity Details

  • Single-premium only
  • 10% annual withdrawal
  • Initial segment bailout provision
  • Death benefit

Formed by former Governor of California

Can limit how much you’re willing to lose by providing access to levels of downside protection that are up to -30% with certain segments and indices. Can also participate in indices like the S&P 500 and Russell 2000 and set a performance cap rate, which is the maximum amount you’ll get from index gains, while also limiting your potential loss.

Minimum Initial Requirement

$25,000

Annual Fee

Variable investment option fees and portfolio operating expenses depending on exact product

Guaranteed Rate of Return

No guaranteed fixed interest rate

A.M. Best Rating

A

Type of Annuity

Registered

Why We Picked It

You can customize a strategy that best suits your needs and risk tolerance by choosing the level of protection you’re comfortable risking, maturity date of your investment (1, 3, or 5 years), and the index to base the performance of your investment.

Pros & Cons

Annuity Details

  • Volatility protection with some downside protection and growth potential
  • Tax-inefficiency protection via diversification, tax deferral, and tax-efficient distributions
  • Fee-based portfolio that benefits; high net worth investors, annuity contract holders with embedded gains, or tax-inefficient mutual fund holders

BEST REGISTERED-INDEX ANNUITY

Top-selling registered-index-linked annuity companies since 1907

The Allianz Index Advantage is a type of a variable annuity with a different risk/return consideration than its traditional accumulation counterparts. It’s designed to complement your portfolio and consists of three variable options and multiple innovative index strategies including.

Minimum Initial Requirement

$25,000

Annual Fee

1.25% annual product fee

Guaranteed Rate of Return

Based on indexes that vary on market performance

A.M. Best Rating

A+

Type of Annuity

Registered

Why We Picked It

You’re able to construct your portfolio by subscribing to a specific type of index strategy through Allianz -- as opposed with only securities, indexes and investment strategies. This can provide an opportunity for growth, along with a floor, or maximum amount of annual losses.

Pros & Cons

Protective Life Company Details

  • Issue age is between 0 - 80
  • A six-year withdrawal charge schedule; 8.5%, 8%, 7%, 6%, 5% or 4% 
  • Indexes available, include the S&P 500, the Russell 2000 Index, the Nasdaq 100, EURO STOXX 50, and iShares MSCI Emerging Markets ETF

BEST INDEX-LINKED SALES ANNUITY

0.95 Annual rider fee

Billed as the industry’s “first flat-fee, Investment Only Variable Annuity (IOVA),” the Monument Advisor for Nationwide has low costs, it’s only $20 per month, and allows you to choose from over 350 funds.

Minimum Initial Requirement

$15,000

Annual Fee

$240

Guaranteed Rate of Return

Varies depending on premium amounts, current interest rates, the annuitant's age and life expectancy and the annuitant's gender

A.M. Best Rating

A+

Type of Annuity

Registered

Why We Picked It

A $240 annual fee may seem excessive, but that’s actually much lower than the average variable annuity. However, it’s the over 350 investment options from 50+ fund families that are most appealing as this allows you to introduce quality investments into your portfolio.

Pros & Cons

Annuity Details

  • Maximum issue age is 95
  • Assets can be withdrawn at anytime -- distributions prior to age 59½ may be subject to a 10% early withdrawal federal tax penalty
  • Available guaranteed death benefit

Variable annuity with a low $1,0000 minimum initial premium

You can customize this annuity by selecting the level of protection to guard against losses and participate in three different index strategies for growth. Also, there’s a crediting strategy that can outperform the index return.

Minimum Initial Requirement

$25,000

Annual Fee

$0

Guaranteed Rate of Return

Varies on selected index crediting strategy, buffer, and indexes performance

A.M. Best Rating

A+

Type of Annuity

Registered

Why We Picked It

If you’ve ever wanted to build your own annuity, then this is the closest you’ll ever get. With Flex Guard you can choose between three different crediting strategies to determine your growth opportunity; Point-to-Point with Cap Rate index, Tiered Participation Rate index strategy, or Step Rate Plus Inex strategy. You can also set your buffer level and term length. And, you can allocate your money through indices like S& P 500, iShares Russell 2000 ETF, Invesco QQQ ETF, and MSCI EAFE or variable investment options that can be mixed and matched in any percentage.

Pros & Cons

Annuity Details

  • Maximum issue age is 85
  • Can choose between a 1, 3, or 6-year term
  • Contract charges include Mortality, Expense, and Administration charges of 1.30% (M&E&A)
  • Contingent Deferred Sales Charge (CDSC); 6 Years: 7%, 7%, 6%, 5%, 4%, 3% per purchase payment

Top Annuity Rates

1. Due Fixed Annuity

Due Annuity

When it comes to fixed annuities, Due has quickly established itself as a market leader. Founded by entrepreneur serial and annuity expert John Rampton, the company has already secured over 12,000 registered users. Those who sign up for a Due account can anticipate a guaranteed annuity rate of 3% return. And, on average, users are receiving $2,100 in retirement income per month.

But what makes Due the nation’s top retirement app? Easy. It’s incredibly accessible and easy to understand.

Due was designed for the average person to finally grab a piece of that guaranteed income ice cream cake. As such, it’s one of the most straightforward and transparent annuities on the market. And, here’s how it works.

Just apply for a Due account. Don’t worry. It’s free and will take you under 10-minutes. Once you’re set-up, you’ll get 3% on every dollar deposited.

That’s it. No frills. No BS.

And, if you’re uncertain on how much you’ll need to save each month, there’s also a handy annuity calculator to determine this amount. And, all of your hard money is deposited into a Charles Schwab account. It’s then managed by Blackstone (NYSE: BX), and ATHOS Private Wealth. If you’re unaware, both have impeccable reputations as two of the best investment firms in the country.

2. American National Single Premium Immediate Annuity (SPIA)

American National Annuities Policy

Since 1905, American National has been providing insurance products and services, including annuities. The company has three annuity options; a fixed deferred annuity, index deferred annuity and an SPIA.

Because American National has an A rating from A.M. Best you can be certain that the company is financially strong and will be sticking around. That makes all of their offerings appealing. But, their SPIA is the superstar of the bunch.

With this annuity, you can convert a lump sum of money into a predictable income stream. In fact, a “joint life” option has an average annual income of $10,609 and an annual payout rate of 5.30% — but it changes with what the current percentages are at the time of payout. You can spread this income out over a number of years, making your taxes more manageable, and there are several cash-out options. That makes it easier to withdraw your money in case there’s an emergency — but as with all annuities, there are fees with early withdrawal.

3. CUNA Mutual Group MaxProtect Fixed Annuity

CUNA Mutual Group Annuities

Issued by the CMFG Life Insurance Company, the MaxProtect Fixed Annuity offers a guaranteed and competitive rate. That means you don’t have to sweat market volatility. But, at the same time, your annuity will grow faster than other taxable investments like CDs.

CUNA also gives you the option to lock in your interest rate for 3, 5 or 7 years. Afterward, you have several options to turn your savings into a series of income payments. And, there are no contract, administrative or upfront fees.

A.M. Best rated CUNA “A,” Standard & Poor’s (S&P) gave it an “A+” and Moody’s gave it an “A2.” That means you should have no concerns over CUNA’s financial future.

4. New York Life Secure Term Choice Fixed Annuity II

New York Life Annuities

In general, you can’t go wrong with any New York Life annuity. After all, the company has a long and rich history dating back to 1845. It also has an A++ from A.M. Best, and has been the top provider of fixed deferred annuities since 2010. The company has also received the highest score among individual annuity providers in customer service by J.D. Power.

But, we’ve selected the New York Life Secure Term Choice Fixed Annuity II as our favorite annuity offering from the company. It requires a $5,000 premium amount to begin, but there aren’t any annual charges. Annuity rates are subject to and depend on the length of the contract, but the Guaranteed Minimum Interest Rate (GMIR) is 0.05% (except in New York where it is 1%). And, you also have the option to go with a 3, 4, 5, 6, or 7-year policy.

5. American Equity GuaranteeShield

American Equity Annuity

Online reviews for American Equity have noted that American Equity delivers outstanding customer service. And, as far as financial strength goes, it’s earned an A- (Excellent) from A.M. Best. Furthermore, the company has several different annuity options.

For our money, though, we like the GuaranteeShield series. It checks all the boxes for a fixed annuity, including;

  • Principal protection
  • Guaranteed income
  • Tax-deferred growth
  • Liquidity
  • May avoid probate

You can also access up to 10% of your contract’s value each year and add on a market value adjustment and death benefit rider. Interest rates may vary each contract year. But, the GMIR will never drop below 1%.

 

Top Fixed Indexed Growth Annuities

6. AIG – Assured Edge Income Builder

AIG Index Annuities

With the Assured Edge Income Builder from AIG, you can reap the benefits of a fixed annuity. Additionally, your guaranteed lifetime income amount (GLIA) will increase based on a 7% income growth rate each year until you begin receiving payments. And, according to the company, the annual income credit is a dollar amount calculated by multiplying the initial GLIA by the 7% income growth rate.

But, there are a couple of other features that make this a highly coveted annuity. There’s also a market value adjustment and a flexible guaranteed withdrawal benefit (GLWB). For example, being able to take multiple withdrawals of up to 10% of your contract value as of the previous anniversary, with no withdrawal charge or market value adjustment (MVA).

You’ll need a $25,000 minimum deposit. And, you should also know that AIG has received an A from A.M. Best, A2 from Moody’s, A+ from S&P, and A+ from Fitch.

7. Nationwide – New Heights 9

Nationwide Fixed Annuities

Going back to 1926, Nationwide offers insurance, retirement, and annuity products. What makes Nationwide a top annuity company is that its products are flexible. For example, you can purchase a premium through a series of payments or just one lump sum.

In particular, the company’s New Heights 9 Fixed Indexed Annuity deserves a shoutout. As stated on the company’s site, “New Heights 9 tracks your potential strategy earnings also known as earnings, daily, and does not limit the amount of index performance used to calculate your earnings.” You also might be able to snag higher long-term accumulation depending on the performance of the underlying index and declared percentage or rate component.

Additionally, your money is protected from potential market risk. And, you can also tack on optional riders. One such rider worth considering is guaranteeing a lifetime income for you, your spouse, or heirs.

Additionally, Nationwide has landed high financial ratings. A.M. Best rated it an A+ (Superior), S&P gave it an A+ (Extremely Strong), and Moody’s rated it an A1 (Upper-Medium Grade).

8. Protective Indexed Annuity II

Protective Life Annuity Product

Protective has been in business since 1907. And, throughout the years they’ve garnered an A+ rating from A.M. Best, AA- from S&P, A1 from Moody’s, and A+ from Fitch. They also just so happen to be one of the top-selling registered-index-linked companies.

With that in mind, we would be remiss if we didn’t mention its Indexed Annuity II. The company promises protection on your principal, a lifetime stream of guaranteed income, and potential for higher growth based on the performance of the S&P 500 Index. One of the most appealing features, however, is that you’re able to access your money penalty-free if you become unemployed, terminally ill, or have to relocate to a nursing facility.

There’s a $10,000 minimum. But, you don’t have to be concerned with an annual contract fee.

9. Global Atlantic ForeIncome II

Global Atlantic Retirement Annuities

Global Atlantic offers several different annuity products including a fixed, variable, income, or fixed index annuity. And, it’s the latter that we want to focus on.

It turns out the Global Atlantic has five different fixed index annuities, FIAs for short. The purpose of these is that you’ll have greater growth potential than traditional deposit products, tax-deferred growth, and no market losses. Also, you can pass the balance on to your beneficiaries.

Specifically, the ForeIncome II stands out the most. It aims to provide you with a “retirement paycheck” for life. And, this is an extra income that you can’t outlive. What’s more, you have two withdrawal options;

  • The Guaranteed Income Builder Benefit offers a steady, predictable income for your entire life. 
  • The Income Multiplier Benefit provides a steady income, but it grows by being tied to the S&P 500.

And, there’s no need to stress over Global Atlantic’s financial strength. The company has earned an A from A.M. Best, Fitch, and Moody’s, along with an A- from Standard & Poor’s.

10. Lincoln Financial OptiBlend

Lincoln Financial Group Protected Annuity

Lincoln Financial has been in existence since 1905. The company offers a wide range of products including annuities, life insurance, retirement plan services, and group protection. But, obviously, we want to highlight the company’s annuities — specifically the Lincoln OptiBlend.

This is a fixed indexed annuity. It has flexible premium annuities and offers a set interest rate for one year. Interest rates are declared annually. Another key feature includes a 5-year, 7-year or 10-year surrender charge schedule.

But, the standout is that your portfolio is tied to the performance of four different indexed accounts; the 1 Year Fidelity AIM Dividend Participation, 1 Year S&P 500 5% Daily Risk Control Spread, 1 Year S&P 500 Cap, and 1 Year S&P 500 Participation.

There’s a $10,000 minimum. But, no annual contract fees.

 

Top Multi-year Guaranteed Annuities

Before we can go any further, you must know that these rates change frequently. As such, the rates we’re including here are from June 2021. To check the most up-to-date rates, visit a source like Blueprint Income or the Annuity Guys.

11. Sentinel Security Life

 

Sentinel Security Life Annuity

This Utah-based business has been in operation since 1948. And, like insurers, they offer multiple annuity products including a fixed indexed and income annuity. However, the company offers some of the highest MYGAs annuity rates on the market.

Case in point, if you purchase a 10-year term, you’ll receive up to 3.20%. You’ll most likely need a $2,500 minimum initial premium — if you opt for Sentinel Security Life’s Personal Choice annuity. And, there aren’t any contract fees. We’re also like that if you become terminally ill or nursing home care withdrawal charges are waived.

What about Sentinel’s financial strength? A.M. Best ranked the firm at a B++ (Good). If you’re curious, this rating comes in eighth on A.M. Best’s scale of 21 possible grades.

12. Atlantic Coast Life Insurance

 

Atlantic Coast Life Insurance Annuity

Founded in 1925, Atlantic Coast Life Insurance is based out of Charleston, SC. While the company may not be a household name, it also offers favorable MYGA rates. One of its best is its 20-year term annuity that will fetch up to 3.30%.

Just for comparison’s sake, CDs offered online are paying 3% or less on a five-year paper. And, CDs available at bank branches are substantially less than this. So, we’ll take that 3.30%.

If you’re wary about Atlantic Coast Life Insurance it was rated a healthy B++ by A.M. Best. And, you may even land a first-year bonus of an additional one percentage point.

13. Canvas Annuity Future Fund

Canvas Annuity

Canvas is built around being a people-first annuity company. It promises great rates, flexible access, and absolutely zero commissions. In short, the company states that its revolutionizing annuities.

Considering that Canvas has a guaranteed crediting rate for the following term, 7 years and it’s annuity rates are up to 3.25%, you can’t argue with that sentiment. Moreover, you have 24/7 access to your information online and it’s available for anyone aged 18-90 years old. You’ll just need a $2,500 minimum initial premium.

The Scottsdale, AZ company has a B++ rating from A.M. Best. And, its annuities are issued by Puritan Life Insurance Company of America.

14. Oceanview Life Harbourview MYGAs

Harbourview Annuity

A.M. Best has rated Oceanview an “A-”. Which means the company has a stable outlook. What’s more, the company had multiple interest guarantee periods — 3, 4, 5, 6, 7 & 10 Years. But, what’s interesting is that the issue age is 0 through 89.

But, the company also has competitive rates, such as its 10-year term and annuity rate up to 3.10%. You’ll need a $20,000 premium requirement and there is a market value adjustment. And, the company also offers 10% free withdrawals.

15. Nassau Simple Annuity

Nassau Annuity

Based in Hartford, CT, Nassau Financial Group covers insurance, reinsurance, distribution and asset management. However, you probably can’t go wrong with its 6-year term where you’ll earn up to 3.10%.

Overall, this is a single-premium, multi-year guaranteed annuity that offers protection from market volatility. The premium range is between $5,000 – $1,00,000. Also, the issue age is 18-85.

The company’s financial strength is solid as it has received a B+ from A.M. Best.

Top Variable Annuities

16. Fidelity Personal Retirement Annuity

Fidelity Annuities Solution

Fidelity offers six quality annuities. And, it’s this variety, along with the company’s reputation for delivering stellar customer service, that makes it stand out. But, we’re fans of the Fidelity Personal Retirement Annuity.

Considered a top variable annuity by Barron’s this is a low-cost, tax-deferred annuity that gives you three different investment approaches, as described by the company;

  • A hands-off approach might be a fit if you don’t want to actively manage your portfolio and prefer to choose one single fund where Fidelity provides automatic diversification and professional money management.
  • A hands-on approach might be a fit if you want to manage your own investments. You’ll be able to utilize our powerful research tools to choose from more than 55 Fidelity and non-Fidelity funds, many rated 4 or 5 stars by Morningstar.
  • A sector investing approach might be a fit if you are interested in managing your own investments while focusing on 11 funds that each represent a specific segment of the economy.

A minimum investment of $10,000 is required. But, the annual annuity fees are some of the lowest in the industry — 0.25% for contracts purchased with an initial investment of less than $1 million.

17. Jackson National Life Perspective II

Jackson National Life Fixed Annuity

Even though Jackson National Life is a subsidiary of the British insurer, Prudential plc., its origins go back to 1961 in Jackson, Michigan. Over the years, the company has earned a solid reputation for its financial strength. In fact, Jackson National Life Insurance has received an A (Excellent) rating from AM Best.

The company offers fixed fixed index, and variable annuities. And, it’s its variable annuities that we want to shine a spotlight on. In particular, it’s the Perspective II contract.

It requires a minimum initial premium of $5,000 and has a $35 annual contract charge. You should also expect additional fees like a 1.30% core contract charge and 0.53% – 2.41% annual portfolio operating expenses.

Despite these fees, this annuity is designed for long-term investors with a timeframe of seven or more years. Most appealing is that you can attach the LifeGuard Freedom Flex. In a nutshell, this is Jackson’s version of the income rider benefit with an annual bonus guarantee of 7%. There’s also the opportunity to leave a legacy. And, you can view data for each of its variable annuity products through a partnership with Morningstar.

Finally, Jackson National Life is financially strong as it received an A (Excellent) rating from AM Best.

18. Transamerica Life Principium IV

Transamerica Life Annuity

Transamerica is one of the industry’s leading firms. The company has been around since 1928 and shows no signs of slowing down. After all, it’s securely landed within the top quarter of the A.M. Best, Moody’s, S&P Global, and Fitch scoring structures.

While the company does offer a variety of annuities, we’re partial to Principium IV. Fun fact. The word Principium comes from Latin to signify origin or root. The word itself, however, means principle — especially a basic one.

Overall, this is a lower-cost variable annuity containing a­ five-year surrender charge schedule. Other key features include automatic asset rebalancing, free transfers between subaccounts, and the ability for annuitization after the third policy anniversary. There’s also a dollar-cost averaging feature that will purchase more units when prices are low and fewer when prices are high.

A minimum initial premium of $1,000 is required if qualified and $5,000 for unqualified. There’s also a $35 annual service charge.

19. MassMutual Transitions Select II

MassMutual Annuities

MassMutual is known for providing a plethora of investment options for its variable annuity owners. And, each offering has varying philosophies and risk tolerance levels. As such, you might be able to find a product that fits you like a tailored suit.

If you want investment to be at the core of your variable annuity, then your best option is the Transitions Select II  product. You can choose sub accounts that are managed by some of the industry’s heaviest hitters including Oppenheimer Funds, Fidelity, Black Rock, and Franklin Templeton Investments.

There are also flexible payment arrangements after five years and free withdrawals that are up to 10% of purchase payments. You can also sign-up for MassMutual’s free automatic investment plan (AIP) and automatic rebalancing program.

An initial investment of $3,000 (qualified), $5,000 (non-qualified), is required. There’s also a $40 annual contract maintenance fee. And, if you’re curious about its financial ratings, here’s what MassMutual has received:

  • Fitch: AA+ (the second-highest of 21 grades)
  • A.M. Best: A++ (the highest category of 15)
  • Moody’s: Aa3 (fourth-highest of 21)
  • Standard & Poor’s ranks it at an AA+ (second-highest of 21)

20. Brighthouse Financial Variable Annuities with FlexChoice Access

Brighthouse Financial Annuities Provider

A variable annuity from Brighthouse, which has received an A rating from A.M. Best and Fitch, as well as an A+ from Standard & Poor’s, has the standard features you’d want. These include a guaranteed lifetime income and flexible investment options based on your personalized investment strategy. You can also set it up so that your spouse will continue to receive your payments.

But, it’s the FlexChoice option that makes this annuity worthy of inclusion. For starters, you’ll receive 5% annual compounding for the first 10 years of your contract. There’s also the ability to automatically lock in market gains and take either 6% or 4.75% withdrawals at age 65.

There’s a $10,000 minimum initial premium and a $30 annual contract fee. You should also expect additional fees, such as a 0.53% – 1.67% fund expense fee and 1.30% mortality/ expense/administration charge.

 

Top Registered Indexed Annuities

21. Athene Amplify

Athene Annuity & Life Company

Like a Phoenix emerging from a financial crisis, since launching in 2009, Athene has quickly become an annuity market leader. In particular, its Amplify product is a shining star.

This is a 6-year registered index-linked annuity that allows you to pursue growth opportunities so that you’ll get the most out of your annuity without taking on too much risk. There’s also a lot of flexibility with this annuity. For starters, Amplify offers 1, 2 and 6-year term periods. There’s also 4 different index options. And, you can also leave a legacy.

In regards to its financial strength, Athene has scored an “A” from A.M. Best, Fitch, and S&P.

22. Equitable Structured Capital Strategies

Equitable Annuity

Equitable Holdings Inc. was founded back in 1859. And, because of its financial strength, you can be confident that the company will be around for the foreseeable future. It has received an A from A.M. Best, A2 from Moody’s, and A+ from Standard & Poor’s.

As for annuities, we can get behind its Structured Capital Strategies variable annuity. Mainly because, as stated on its website, it “adapts to your unique investment styles so you can work toward your individual retirement goals on your terms.”

Specifically, this annuity provides the following;

  • Levels of downside protection that are up to -30%
  • Participation in indices, like the S&P 500 and Russell 2000, with the ability to up to a set performance cap rate, while also limiting your potential loss
  • Customization, such as the maturity date (1, 3, or 5 years), how much you’re willing to risk, and the index you’d like to base the performance of your investment

You’ll need $25,000 to get started. And, there will be fees like a 1.65% variable investment option fee and 0.58% – 0.71% annual portfolio operating expenses.

23. Allianz Index Advantage

Allianz Life of North America Fixed Annuity

This is the company’s core index variable annuity. It’s “designed to help you accumulate money for retirement and provide income after you retire,” Allianz states on its website. “It can give you long-term growth potential through market participation – plus a level of protection – through a combination of traditional variable options and multiple index strategies.”

However, this annuity really shines because you can subscribe to a specific type of index strategy through the company. That’s a stark contrast to other annuities where the portfolio is constructed with securities, indexes, and investment strategies.

Note that there are two separate annual fees associated with the Allianz Index Advantage Variable Annuity. The first is a 1.25% product fee, as well as a 0.64% to 0.72% variable option fee. But, if you annex the optional death benefit plan for an additional 0.20% fee will join it.

Also, don’t forget about the $10,000 minimum initial premium. And, if you’re a curious cat, Allianz has a solid A+ AM Best Rating.

24. Nationwide Monument Advisor

Nationwide, and its superior A+ rating from A.M. Best, offers the industry’s first flat fee, Investment Only Variable Annuity (IOVA). As such, there’s a low-cost $20 per month flat fee. How far will that get you? Well, this annuity has over 350 investment options — which is the largest in the industry.

As such, this annuity is ideal if you’re looking for a low-cost option and/or investment diversification. In fact, it’s these two features that make the Nationwide Monument Advisor so engaging.

Just take note that you may have to pay other fees as well. For example, additional fund platform fees can range from 10% to 35%. So, if you’re not careful, this low-cost, tax-deferred annuity could become rather expensive. And, a $15,000 minimum deposit is also needed.

25. Prudential FlexGuard Indexed Variable Annuity

Prudential Annuities

And, finally, we have the FlexGuard Indexed Variable Annuity from Prudential. This Fortune 500 company, which has an A+ from A.M. Best, states that this annuity can simplify your retirement planning while avoiding exposure to markets. It can also produce a reliable, “pension-like” guaranteed income stream.

FlexGuard also allows you to choose your buffer level as well as your term length and to allocate your money. This will be through well-known indices like S& P 500, iShares Russell 2000 ETF, Invesco QQQ ETF, and MSCI EAFE. And, perhaps most tempting, is that you can also select your own growth opportunity based on three different index returns; Point-to-Point with Cap Rate index, Tiered Participation Rate index strategy, or Step-Rate Plus.

You’re permitted to withdraw up to 10% of all purchase payments each year without incurring any surrender charges — just as long as the withdrawal is made within the surrender charge period. Other contract charges include Mortality, Expense, and Administration charges of 1.30% (M&E&A). These apply only when you allocate money to variable sub-accounts. And, a minimum purchase payment of $25,000 is required.

 

Here’s a summary of the best annuity rates of 2021

Annuity Name Type of Annuity Deferred or Immediate? Key Feature Minimum Initial Premium Guaranteed Rate of Return Contract Term Withdraw? Annual Fees A.M. Best Rating
Due Fixed Annuity Fixed Both Accessibility. Anyone can apply in under 10 minutes. $0.00 3.00% Withdraw at anytime, Free – up to 10% of contract value $10/month
American National Single Premium Immediate Annuity (SPIA) Fixed Immediate Flexibility, like multiple income payment options. $0.00 5.30% Partial None A
CUNA Mutual Group MaxProtect Fixed Annuity Fixed Both A market value adjustment and book value version $10,000.00 3, 5, or 7 years Free for health hardship None A
New York Life Secure Term Choice Fixed Annuity II Fixed Deferred A market value adjustment that could boost your finances $5,000.00 0.05% 3, 4, 5, 6, or 7 years Free – up to 10% of contract value None A++
American Equity GuaranteeShield Fixed Deferred Principal protection and guaranteed lifetime income $10,000.00 Never below 1% 5, 6, or 7 years Free – up to 10% of contract value None A-
AIG – Assured Edge Income Builder Fixed Indexed Growth Both You can decide when payments will begin $25,000.00 7.00% 7 years Multiple – up to 10% None A
Nationwide New Heights 9 Fixed Indexed Growth Deferred Principal protection with higher long-term accumulation $25,000.00 2%-5% 9 years Free – 7% of the contract’s value on the first day of the contract year None A+
Protective Indexed Annuity II Fixed Indexed Growth Deferred Can access money penalty-free if unemployed, terminally ill, or have to relocate to a nursing facility $10,000.00 1.20% – 1.55% 5 or 7 years See “Key Feature? None A+
Global Atlantic ForeIncome II Fixed Indexed Growth Deferred Guaranteed Income Builder Benefit offers a steady, predictable income for your entire life. $25,000.00 Linked to S&P 5, 7, or 10 years Free – up to 10% of contract value after 6 years None A
Lincoln Financial OptiBlend Fixed Indexed Growth Deferred Performance of portfolio is tied to the performance of four different indexed accounts $10,000.00 1.90% on premium amounts of $100,000 – $2,000,000 5, 7, or 10 years Free – up to 10% of contract value None A+
Sentinel Security Life Multi-year Guaranteed Deferred If you become terminally ill or nursing home care withdrawal charges are waived. $2,500.00 3.20% 10 years   None B++
Atlantic Coast Life Insurance Multi-year Guaranteed Deferred A favorable rate that’s higher then financial products like CDs. $2,500.00 3.30% 10 years   None B++
Canvas Annuity Future Fund Multi-year Guaranteed Deferred Accessibility. Anyone over age 18 can apply. And, you can access your account 24/7 $2,500.00 3.30% 20 years   None B++
Oceanview Life Harbourview MYGAs Multi-year Guaranteed Deferred Market value advisement, as well as expansive age range from 0 to 89 $20,000.00 3.25% 7 years Free – up to 10% of contract value None A-
Nassau Simple Annuity Multi-year Guaranteed Deferred Single-premium, multi-year guaranteed annuity that offers protection from market volatility $5,000.00 3.10% 3, 4, 5, 6, 7 & 10 years Free – up to 10% of contract value None B+
Fidelity Personal Retirement Annuity Variable Both Offers three different investment styles; hands-on, hands-off, sector investing. $10,000.00 6 years Free – up to 5% of your contract value None A-
Jackson National Life Perspective II Variable Deferred Highly customizable with a max annuization age of 95 $5,000.00 Free – up to 10% of contract value 0.25% for contracts purchased with an initial investment of less than $1 million (or which have not yet accumulated $1 million) A
Transamerica Life Principium IV Variable Deferred Back to basics with an investment only strategy $1,000.00 7 years Free – up to 10% of contract value $35 A
MassMutual Transitions Select II Variable Deferred Choose sub accounts that are managed by Oppenheimer Funds and Franklin Templeton Investments. $10,000.00 Free – up to 10% of contract value $40 A++
Brighthouse Financial Variable Annuities with FlexChoice Access Variable Both Receive 5% compounding and Automatic Step-Ups $10,000.00 Free – up to 10% of contract value $30 A
Athene Amplify Registered Index Both Four different index options. $10,000.00   1, 2, or 6 years Free – up to 10% of contract value $30 A
Equitable Structured Capital Strategies Registered Index Both Customizable and levels of downside protection that are up to -30% $25,000.00     Free – up to 10% of contract value 1.15% variable investment option fee A
Allianz Index Advantage Registered Index Both Ability to subscribe to a specific type of index strategy through the company. $10,000.00     Free – up to 10% of contract value 1.25% annual product fee A+
Nationwide Monument Advisor Registered Index Both The industry’s first flat fee, Investment Only Variable Annuity (IOV) $15,000.00     Free – up to 10% of contract value $20 A+
Prudential FlexGuard Indexed Variable Annuity Registered Index Both Provides a guaranteed income stream with ability to choose buffer level $25,000.00   1, 3, or 6 years Free – up to 10% of contract value None A+

 

Methodology

In order to determine the best annuity rates for each category, we considered the costs and benefits of each annuity on the market. Costs of each annuity include: the annual fee, withdraw transaction fee and the annuity rate offered by the annuity company. Benefits and perks are different for each person. Initial contribution minimums tends also be a large contributing factors in your purchasing or not purchasing.

In addition, each annuities category has its own criteria. For fixed annuity rates we also considered how much value you can expect to get guaranteed over the volatility in a variable or indexed annuity rate. We find fixed annuity rates range from 1% to 3%. Variable and Indexed tend to be from -2% to 6% interest on your money. This was a large factor in which annuity rate has the lowest net cost.

For annuities meant for those who are trying to build long term retirement or have 15+ years till retirement, we focused on annuity offers that offer the most opportunities to have a sustainable rate over the longest period of time with lowest net cost to the consumer.

For indexed annuities we looked at the length of variable rate, minimum initial premium and fees.

Every A.M. Best Rating was factored when comparing which annuity rate is the best.

 

Frequently Asked Questions about Annuities

What makes an annuity a good investment?

Annuities (the way we write about them and cover) are for the most part fixed annuities. We think fixed annuities make a good investment as they come with a guaranteed fixed percentage you’ll get on your money.An annuity is also a great investment because it gives you a fixed sum of money. This helps for the unpredictable future. Nice to have money coming in every month. You will also know exactly what that amount is each month.

What else should I be asking about an annuity?

You should really be asking about fees. With every annuity there will be fees associated with processing and administering your annuity. For example, if you purchase your annuity through a broker, the average broker will receive 7% to 14% of all the money you contribute to your annuity account. Some of the best annuity companies go direct to their customers, cutting out these large fees.Make sure you’re paying attention to these fees. They can eat away most of your profit and gains. We even know one annuity company that guarantees 8% interest on your money. What they don’t tell you is that they have an average of 6.5% in annual fees + processing fees. This takes the money you earn on your money to almost 1%. Pay attention to annuity fees.

How much does a $100,000 annuity pay per month?

This really depends on your age. If you’re 34 years old and retire at 66 years old, this would amount to almost $800/month for the rest of your life. If you’re 66 years old and want to start receiving your annuity right now it would be around $320/month.The earlier you start saving the more money you’ll start receiving. The reason for this is the interest you’ll accrue on your money each and every month. It’ll start adding up.

What is the highest rated annuity?

You will see above the full list of the best annuities in the US. We’ve put together a comprehensive list to help you make the most educated decision when buying an annuity. Make sure when you purchase an annuity that you pay attention to the fees. Some annuities are highly rated but carry large fees. Others carry low fees but aren’t. There are many middle of the road. We’ve put together the information so you can make the call.

Can you lose money in an annuity?

Yes, there is a chance with any investment that the company you invest your money with may go out of business. There is also a chance that your currency (in this case the USD) might collapse. This is very unlikely but it still can happen.Most fixed annuities are guaranteed rates. These are typically less profitable than variable annuities but come with much less risk. Variable annuities are attached to a market or market rate. Those have been known to go negative during certain bad markets that have happened in the past.

 

Other Annuity Facts To Be Considered

 

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