Can I Get a 7% Annuity?

Shawn Plummer

CEO, The Annuity Expert

Can I Get a 7% Annuity?

No, as of February 1, 2024, a 7% annuity is unavailable. However, you can obtain up to a 6% fixed interest rate through a Multi-Year Guaranteed Annuity (MYGA). Advertisements promoting a 7% rate are often misleading, as they do not represent a genuine interest rate but rather a hypothetical figure applied towards a guaranteed lifetime income. Moreover, as of March 2024, some annuity plans offer up to a 20% premium bonus.

Get a clear view of your annuity’s value with our comprehensive annuity payout calculator.

Understanding Annuity Rates

Annuity rates, such as the 6% offered on MYGAs, are fixed for a set period. This ensures a consistent return on your investment for the duration of the term. MYGAs are popular for their stability and predictable income stream.

Misleading Advertisements

Advertisements claiming 7% returns are often referencing projected income rates, not actual interest earnings. These figures are typically used in marketing materials to illustrate potential income in retirement but are not guaranteed interest rates.

Premium Bonuses

The premium bonus, which can be as high as 20%, is an additional amount added to your annuity contract’s value. This bonus can enhance the overall value of the annuity, but it’s essential to understand the terms and conditions attached to such bonuses.

Map out your financial future with our comprehensive retirement calculator.

Annuity Options Comparison

Annuity TypeInterest Rate (As of Nov 2023)Features
MYGAUp to 6%Fixed interest, Guaranteed returns
Other AnnuitiesAdvertised as 7%Hypothetical rates for lifetime income
Bonus AnnuitiesUp to 20% premium bonusBonus added to contract value


While a 7% annuity is not available, you can still benefit from attractive options like a 6% MYGA or a 20% premium bonus. Understanding the differences between real interest rates and advertised hypothetical rates is crucial in making an informed decision. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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