The Best Annuities For March 2024 (2024)

What To Know Before Researching The Best Annuities (Must Read)

There’s a lot of noise out there when it comes to financial advice about annuities. It can be tough to sort through all the conflicting information and determine what’s best for your situation. That’s why it’s essential to get advice from someone with experience in the industry.

The Annuity Expert is an annuity and insurance agency staffed by independent licensed financial professionals. We have years of experience helping people find the right products for their needs. And because we’re not affiliated with any company, we can give you unbiased advice about which annuities or insurance policies are right for you.

So, if you’re looking for sound financial advice, you can trust (and not from a freelance writer with zero industry experience), welcome to The Annuity Expert. We’ll help you sort through all the options and make the best decision for your situation.

How We Base Our Recommendations

When selecting thebest annuity companies to recommend to our clients, we employ a comprehensive methodology that includes the following criteria:

1. AM Best Financial Strength Rating: AM Best is a specialized independent rating agency that evaluates insurance companies. It assigns a letter grade reflecting a company’s financial health and capacity to honor claims.
2. S&P Global Financial Strength Rating: Standard & Poor’s, another reputable credit rating agency, offers insights into a broad range of companies, not exclusively insurers.
3. Comdex Rating: This unique system amalgamates scores from the four principal credit rating agencies: AM Best, Standard & Poor’s, Moody’s, and Fitch. The Comdex score distills these evaluations into a singular numeric value, ranging between 0 and 100, where 100 is optimal.
4. NAIC Complaint Index Score: Overseen by the National Association of Insurance Commissioners, this index monitors an insurer’s complaint volume. The complaint index score provides a ratio juxtaposing the number of complaints an insurer has with the industry average for companies of analogous size. A score below the mean is favorable, signaling that the insurer has garnered fewer complaints than its counterparts.
5. Annuity Products: A company’s high ratings don’t necessarily translate to the best annuity product for you. While these ratings indicate financial strength, it’s essential to consider how the product aligns with your financial goals and needs. Take New York Life, for instance. Despite being a highly rated company, some of its annuity options might require you to relinquish control over your funds or expose your retirement savings to market fluctuations. A strong company doesn’t always equate to an ideal product for every individual.

Disclaimer:We are licensed financial professionals representing and selling these annuity companies. Because rates and features change frequently, contact us below for the most up-to-date recommendation for your specific situation.

And remember, not all annuities are created equal.

How To Find The Best Annuity Products

There are a variety of annuities on the market, and it can be challenging to determine which one is right for you. However, we believe (at a minimum) the best annuities are those sold by “A” rated companies with A.M. Best. The best annuity company will provide the highest guaranteed income, the best and safest growth, and the best interest rates.

The Best Fixed Annuities

When it comes to fixed annuities, there are many options out there. And with so many choices, knowing which is right for you can be tough. But there are some things to look for that can help you narrow down the field. First, go with a highly-rated company with a strong reputation. Then, make sure the interest rate is competitive. And finally, choose an annuity that is easy to understand and has no gimmicks.

By following these guidelines, you can be sure you’re getting the best possible deal on a fixed annuity.

• 2-Year Fixed Annuity:Oceanview Annuitybecause they tend to have higher interest rates with standard liquidity. (“A” rated annuity company)
• 3-Year Fixed Annuity: Clear Spring Annuity because they are straightforward, solid annuity rates and standard liquidity. (“A-” rated insurance company)
• 5-Year Fixed Annuity:Americo Annuity(“A” rated annuity company)
• 7-Year Fixed Annuity:Fidelity and Guaranty Annuity(“A-” rated annuity company)

The Best Immediate Annuities

We typically don’t recommendimmediate annuitiesbecause we aren’t fans of retirees giving up control over their savings (with little to no interest). However, some SPIAs offer emergency liquidity features that we like.

• Integrity’sImmediate Annuity (A+ Rated)
• Global Atlantic’sImmediate Annuity (A Rated)
• North American’s BenefitSolutions Annuity (A+ Rated)

If you seek an immediate income annuity, considerfixed index annuitieswith a guaranteed lifetime income rider and start the income immediately. Annuity owners will have the flexibility to turn the retirement income on or off, access their savings, and be able to keep up with inflation and earn interest while receiving the income for life.

The Best Fixed Indexed Annuities

Indexed annuities offer features that can appeal to retirees, including the potential for high lifetime income and upside potential while protecting your savings from losing money. The best-indexed annuities will offer the highest income and upside potential while providing high protection for your savings. So, if you’re looking for an option to help you maximize your retirement income, anindexed annuitymay be the right choice.

Lifetime Income Annuity

• Seeking future income:North American’sIncome Pay Pro Annuity (A+ Rated) andNationwide’sNew Heights Deferred Income Annuity (A+ Rated)
• Seeking a steady income now:North American’sBenefitSolutions Annuity (A+ Rated) andNorth American’sBenefitSolutions Annuity (A+ Rated) are great deferred income annuities.

Best Index Strategies For Growth

• Best fixed index annuity (S&P 500-based):Americo’s LibertyMark Freedomfixed indexed annuity (A+ Rated)
• Best fixed index annuity (Nasdaq-based):Athene’sPerformance Elite fixed indexed annuity (A Rated)
• Best fixed index annuity (fixed interest rates):Oceanview’sfixed-indexed annuity

Death Benefit

• Americo’sClassicMark will provide beneficiaries with130%of the account’s value with the HeritageMaximizer rider.
• Athene Agility offers the income base with a massive bonus (20%) paid out over a series of payments at death, and there’s no additional cost for this feature.

The Best Guaranteed Annuities

There are a few key factors when searching for the best annuity.

First, compare interest rates. A higher interest rate will offer more growth potential for your investment.

Next, consider whether you want a premium bonus. This can immediately boost your investment, but it is essential to understand the terms and conditions attached to the bonus before investing.

Finally, think about whether you want a lifetime income stream. This type of annuity can provide peace of mind in retirement, but it is essential to ensure that the income stream will be adequate to cover your needs.

• Average Interest Rate: Oceanview’s HarbourviewMYGA
• Best Guaranteed Minimum Interest Rates:MassMutual guarantees at least 1% annually on 100% of the premium.
• Premium Bonus: Athene Performance Elite 15 PLUS guarantees a 20% bonus.
• Income Generation: F&G’s Safe Income Advantage Annuity

The Best Bonus Annuities

If you’re looking for an annuity that offers a sign-on bonus, you may want to consider abonus annuity. When you sign up, these annuities offer a lump-sum bonus, which can help offset any losses in your portfolio and give you a head start on your retirement savings.

• Athene Performance Elite Series (Up to 20% Bonus)
• Fidelity & Guaranty’s Performance Pro (Up to 15% Bonus)
• Midland IndexBuilder (Up to 11% Bonus)

The Best Fixed Income Annuities

If you’re looking for a way to guarantee a monthly retirement income, then afixed-incomeannuity may be right. These annuities pay a fixed monthly amount for as long as you live. And even if the annuity runs out of money, the monthly payments will continue coming from the insurance company. That means you can rest easy knowing you’ll always have a steady income stream, no matter how long you live. So if you’re looking for a way to ensure a comfortable retirement, consider a fixed-income annuity.

• F&G’s Safe Income Advantage (A- Rated)
• American Equity’s IncomeShield (A- Rated)
• Nationwide’s New Heights Deferred Income Annuity (A+ Rated)
• North American’s BenefitSolutions Annuity (A+ Rated)

The Best Deferred Annuities

The best-deferred annuities offer both growth potential and solid lifetime income payouts.

• Athene’sAscent Seriesprovides solid growth potential with lifetime income (for a fee)
• Athene’sAgility Seriesprovides solid growth potential with increasing lifetime income for inflation protection (no additional fee)

The Best Paying Annuities

• North American’s BenefitSolutions 10 (A+ Rated)
• F&G Safe Income Advantage (A- Rated)
• American Equity’sIncomeShield (A- Rated)
• Nationwide’s Peak 10is the best for couples. (A+ Rated)

The Best Annuity With Long-Term Care Riders

With the rising long-term care costs, many people are looking for ways to protect their assets. One option is to purchase anannuity with a long-term care rider. While there are severaldifferent types of annuities, the best annuity for long-term care costs is one that will pay for most, if not all, of the expenses. There are a few things to consider whenchoosing an annuity, such as the length of the contract and the payout options. However, with careful planning, an annuity can be an excellent way to cover thecost of long-term care.

• Deferred Annuities With Long-Term Care Riders:North American’sVersaChoice Annuity (A+ Rated)
• Long-Term Care Annuity:Global Atlantic’sForeCare Deferred Fixed Annuity (A Rated)

The Best Annuity For Young Adults

Several fixed index annuities provide the highest upside potential with protection from stock market loss. In addition, these products offer great flexibility and can be tailored to your specific needs.

These products will also allow you to purchase even more upside potential. This means that you can have peace of mind knowing that your downside is protected while still having the opportunity to maximize your returns.

When choosing a fixed index annuity, compare the available products to find one that best suits your needs.

• Athene’s Performance Elite Series
• American Equity AssetShield Series

The Best Tax Deferred Annuity

Athene Agility Fixed Indexed Annuity is our top choice for tax deferral for several reasons.

• Lifetime Income Guarantee: Enjoy a lifetime income you and your spouse cannot outlive, providing financial security throughout retirement.
• Flexible Interest Earning Options: You can earn interest on your investment based on either a fixed rate declared annually or a market index, offering potential for growth while safeguarding against market downturns.
• Day 1 Bonus: Receive a bonus credited to your death benefit from the inception of your policy, enhancing the value for your beneficiaries.
• Flexible Death Benefit Options: Upon your passing, beneficiaries can choose between a lump sum death benefit or an enhanced death benefit spread over 5 years, providing flexibility in tax planning and distribution.
• Tax Advantages: Benefit from full tax deferral on funds within the policy, including growth. Opting for the enhanced death benefit spread over 5 years helps mitigate tax liabilities for beneficiaries by spreading out distributions over time.

The Best Returns On Annuities

These annuities illustrate the highest returns (hypothetically). The image below is a snippet from my annuity to give you a better idea of returns.

• Athene Performance Elite Series
• American Equity’s AssetShield Series

The Best Annuity For Seniors

There are a few key factors to consider when finding the best annuities for seniors.

• First, finding a product that will protect your investment from stock market losses is essential.
• Second, you’ll want to find an annuity that guarantees a stream of income for as long as you live.
• Third, choosing an annuity will help pay for long-term care expenses is helpful.
• Finally, you’ll want to find an annuity that leaves your beneficiaries with a lump sum death benefit.

Based on these criteria, our recommendation for the best annuity for seniors would be American National. They are a financially strong insurance company with an A Rating from AM Best, over 100 Years of history to back their guarantees, and consistently near the top when it comes to rates and product offerings.

In addition, they allow up to 10% of your account value to be withdrawn without a penalty on most of their product offerings, which is higher than what most other insurance companies allow. Another factor in our recommendation is that they will allow seniors up to and including age 85, which is also higher than what some other companies allow.

The Best Annuity For Retirement

There is no one-size-fits-all solution when it comes to annuities. The best annuity for retirement will depend on your individual needs and objectives. However, some features are common to all suitable retirement annuities.

First and foremost, a suitable annuity will provide a steady stream of income that you can rely on in retirement. It should also offer a safe investment option with potential growth without risk.

Additionally, a suitable retirement annuity should provide long-term care benefits in case you need assistance with activities of daily living.

Finally, a suitable annuity should also provide a death benefit so your loved ones are cared for if you pass away.

• Retirement Income: Deferred Annuities With Lifetime Income Riders
• Safe Investing: Deferred Fixed Annuities and Fixed Indexed Annuities
• Long-Term Care: Long-Term Care Annuities
• Estate Planning: A Deferred Annuity With An Enhanced Death Benefit

Our recommendation is Fidelity and Guarantee. They are A Rated with AM Best and consistently offer some of the highest payouts on their retirement income annuities. While rates fluctuate throughout the year, Fidelity and Guarantee are generally near the top and keep their retirement incomes competitive with the other retirement income annuities in the market. In addition to the competitive incomes and strong financial ratings, they credit the annuitant’s income pool of funds daily. This means your payments go up every day you wait to turn the income on. This is unique to Fidelity and Guarantee since most companies do not credit the income pool of funds daily but annually.

The Best Overall Annuity Companies

The Companies With The Best Products

1. Midland National Life Insurance Company
2. Lincoln National Life Insurance Company
3. North American Company For Life And Health Insurance
4. Athene Annuity & Life Company
5. American General Life Insurance Company

The Best-Rated Companies

• Reliance Standard(A++ Rated)
• Nationwide(A+ Rated)
• North American(A+ Rated)
• Midland National(A+ Rated)

Insurance companies are rated by organizations like A.M. Best, Standard & Poor’s, and Moody’s. These ratings give consumers an idea of an insurance company’s financial stability and how likely it is to pay out on claims. However, it’s important to note that these ratings don’t necessarily reflect the quality of the products offered by an insurance company.

For example, an “A+”-rated insurance company could offer products with little to no growth potential or a lower income for life.

What Do We Not Recommend In Annuities

When planning for retirement, you want to ensure that you work with the best insurance company. After all, your retirement savings are likely to be one of the most important investments you will ever make.

That’s why we only recommend working with an A-rated insurance company. These companies have a proven track record of success in their claims-paying ability and offer many features to help you meet your retirement goals.

However, we understand that there may be some instances where you need to work with a B-rated company to get a specific feature unavailable from an A-rated company. In these cases, we still believe obtaining your retirement goals is possible.

In most scenarios, we do not recommend a variable annuity because we’re not fans of retirees losing money or paying 2-3 times in annual contract fees compared to other annuity products.

The Worst Annuities To Avoid

Because there are so many annuity products to select from, most of which are terrible, our general rule of thumb for the worst annuities are:

• Brick-and-mortar financial institutions: Any annuity that requires you to give up control of your money (annuitization). Brick-and-mortar financial advisors (Fidelity, Charles Schwab, New York Life) typically recommend these, and although they have great financial strength, the retiree’s liquidity shouldn’t suffer.
• Poorly rated companies: “B” rated companies should be avoided at almost all costs. If the insurance company can’t attain an A- or better rating, you should not “bet” on its competence long-term. Surprisingly, many insurance companies have been around for over 50 years and still can’t attain an A- A.M. Best rating. Do you want to gamble money on them?
• Performance-driven income riders: If you’re seeking lifetime income, stick to guaranteed income riders and avoid performance-based income riders. Annuity owners should be able to predict their future income, and performance-based income riders tend to over-deliver and under-perform, leaving annuity owners compromising their cash flow in retirement.

How We Evaluated the Best Annuities: An Independent Perspective Since 2009

Leveraging our extensive experience dating back to 2009, we, as independent annuity brokers, represent over 30 premier annuity companies. Our evaluations are rooted in comprehensive research, firsthand expertise, and an unwavering commitment to serve your best interests.

Choosing the Right Annuity for Your Needs

Annuities, being long-term investments, require careful consideration. If you decide to cancel prematurely, many contracts impose a significant surrender charge. Thus, it’s vital to select a reputable annuity company upfront. When evaluating potential options, consider these key aspects:

• Competitive Returns and Income: Annuity companies offer varied investment rates and associated performance and income guarantees. Ensure the one you select is at the forefront of competitiveness.
• Reasonable Fees: The higher the annual fees, the less you’ll earn from your annuity. Always evaluate the fee structure to ensure you’re getting good value for your investment.
• Beneficial Annuity Features: The ideal annuity provides some level of flexibility, such as allowing early, penalty-free partial withdrawals. Moreover, some companies offer customizable contracts with riders that provide additional benefits.
• Financial Stability: An annuity might need to serve you for decades. It’s essential that the insurance company remains solvent throughout this period. Due to its importance, we’ve placed a significant emphasis on a company’s financial strength in our evaluations.
• Customer Satisfaction: Gauge the company’s reputation by checking its NAIC complaint index. The annual J.D. Power survey for annuities also offers insights into customer satisfaction levels. During retirement, the last thing you’d want is to grapple with payment disputes. Companies with higher customer satisfaction ratings tend to resolve issues swiftly and efficiently.

Next Steps

Knowing where to start when it comes time to invest in an annuity can be difficult. With so many products available, how do you find the best one for your needs? By comparing different options and understanding the terms and conditions of each product, you can make an informed decision about which annuity is right for you.

If you’re ready to start, contact us today for a free quote. We would be happy to help!

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Frequently Asked Questions

Please note that annuity products are not approved in all 50 states. However, some states have their version of the product. Finally, annuity rates change constantly, so use this as a reference.

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