Annuities are financial products that provide a steady income for the retiree. They typically come with a guaranteed rate of return which is often fixed or variable and can be paid out monthly, quarterly, yearly, or even daily. This guide will cover some of the best annuity rates on the market today!
- What is an Annuity Rate?
- Best Fixed Annuity Rates for December 2021
- Best Immediate Annuity Rates for December 2021
- Best Premium Bonus Annuity Rates for December 2021
- Best Fixed Index Annuity Rates for December 2021
- Best Lifetime Annuity Rates for December 2021
- Best Short Term Annuity Rates for December 2021
- Request Annuity Rates
- Related Reading
What is an Annuity Rate?
An annuity rate is a percentage by which an annuity grows each year. The annuity provider sets the rate, usually an insurance company that issues the contract. The provider guarantees an interest rate for a set time period, usually two to 10 years. This growth rate is different from an annuity payout rate, which refers to the payment amounts of regular distributions.
For MYGA and fixed annuity rates, the interest rate is fixed like a CD rate. However, the guaranteed rates make it easy to understand how much money you will get back.
Variable annuities, income annuities, and fixed index annuities are a little more complicated. They do not have a fixed interest rate like other types of annuities. That means people will not find the rates for those products when searching for the best kinds of annuities.
Best Fixed Annuity Rates for December 2021
Multi-year guaranteed annuity or MYGAs are a type of fixed annuity. They guarantee you will get a specific interest rate for 2-10 years. MYGAs are subject to surrender charges, which an annuity owner must pay if they cancel the annuity before the term is over. However, MYGAs do offer limited liquidity during the term to withdraw income.
The best MYGA rate is 3.2 percent for a 10-year surrender period, 3.25 percent for a seven-year surrender period, 3.05 percent for a five-year surrender period, and 2.60 percent for a three-year surrender period.
MYGA rates change daily.
Best 2-Year Annuity Rates
Best 3-Year Annuity Rates
| Company | Rate |
|---|---|
| Canvas* | 2.60% |
| Ohio State Life | 2.50% |
Best 4-Year Annuity Rates
Best 5-Year Annuity Rates
| Company | Rate |
|---|---|
| Sagicor | 3.00% |
| Canvas* | 3.05% |
| Atlantic Coast Life | 3.15% |
Best 6-Year Annuity Rates
| Company | Rate |
|---|---|
| Atlantic Coast Life | 3.17% |
| Atlantic Coast Life | 3.16% |
Best 7-Year Annuity Rates
| Company | Rate |
|---|---|
| Canv*as | 3.25% |
| Atlantic Coast Life | 3.22% |
Best Immediate Annuity Rates for December 2021
Immediate annuity payout rates vary based on your upfront payment amount to the insurance company. Specific contract terms, your gender, age, and other factors can also impact this payout rate. You can use an annuity calculator to estimate monthly payments or contact us to help you compare quotes.
Rates are based on a $100,000 annuity. Annuity payouts are annuitized annual payments. Rates change weekly.
| Payout | Age 60 | Age 65 | Age 70 |
|---|---|---|---|
| Single Life | $5,016 | $5,688 | $6,588 |
| Life with 10 Year Period Certain | $4,944 | $5,532 | $6,300 |
| 10 Year Period Certain | $10,515 | $10,515 | $10,515 |
| 20 Year Period Certain | $6,053 | $6,053 | $6,053 |
Best Premium Bonus Annuity Rates for December 2021
Annuities can offer a guaranteed sign-on bonus called a premium bonus. In addition, when a new annuity owner purchases their annuity, they may receive a guaranteed rate of return.
| Product | Bonus |
|---|---|
| Athene Performance Elite | 17% |
| American Select Bonus | 16% |
| Athene BCA 12 | 14% |
| Midland IndexBuilder | 11% |
| Securian Ultra 5 | 10% |
Best Fixed Index Annuity Rates for December 2021
Fixed index annuity rates are a little bit more complicated than a traditional fixed annuity or MYGA. Index annuities allow annuity owners to choose how they earn interest, a fixed interest rate, or the performance of an index like the S&P 500 or a combination of both.
Fixed indexed annuities are not stock market investments and do not directly participate in an index. Instead, they are insurance policies for retirement and can not lose money in a stock market crash.
These fixed indexed annuity strategies illustrate the highest hypothetical historical rates of return (2010 – 2020). These are non-guaranteed returns. Contact us about the products with these strategies.
Best Indexed Annuity For Growth
| Annuity Company | Fixed Indexed Annuity |
|---|---|
| American Equity | AssetShield 10 Annuity |
| Athene Annuity | Performance Elite 15 Plus |
| Midland National | RetireVantage Annuity |
| Fidelity and Guaranty | Power Accumulator 10 |
Best Illustrated Fixed Indexed Annuity
| Product | Rate of Return |
|---|---|
| 2-Year SG Global Sentiment PTP Participation Rate | 14.22% |
| 2-Year CS Tech Edge PTP Participation Rate | 13.98% |
| 2-Year Nasdaq FC PTP Participation Rate | 13.67% |
Best Lifetime Annuity Rates for December 2021
Lifetime annuities provide annuity owners an income for the rest of their life or the rest of the annuity owner and spouse’s lives, even if the annuity has run out of money.
Rates are based on a $100,000 annuity. The income start dates will be immediate, after 5 years, or after 10 years. Annuity payouts are annual payments.
| Age | Immediate | 5 Years | 10 Years |
|---|---|---|---|
| 60 | $5,250 | $7,648 | $11,685 |
| 65 | $5,750 | $8,730 | $12,747 |
| 70 | $6,250 | $9,576 | $14,108 |
Best Short Term Annuity Rates for December 2021
Deferred annuity terms can be as short as 2 years in length. Here are the best short-term annuity rates.
Request Annuity Rates
Related Reading
- How Much Does a $50,000 Annuity Pay?
- How Much Does a $100,000 Annuity Pay?
- How Much Does a $200,000 Annuity Pay?
- How Much Does a $250,000 Annuity Pay?
- How Much Does a $500,000 Annuity Pay?
- How Much Does a $1,000,000 Annuity Pay?
- How Much Money Do You Need To Retire With $100,000 A Year In Income?
- How Much Money Do You Need To Retire With $50,000 A Year In Income?
I’m a licensed financial professional. I’ve sold annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.
My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you.