What a 6-Year Annuity Really Means
A 6-year annuity is a contract with a six-year commitment period. During those six years, your money grows or pays income based on the annuity type. Early exits usually trigger surrender charges. After year six, you typically regain full control.
Most six year annuity shopping comes down to three options:
- MYGA for a guaranteed rate over the full term
- Fixed indexed annuity (FIA) for index-linked growth potential with no market-loss risk
- Period certain annuity for a guaranteed income stream that lasts exactly six years, then stops
Why do people pick six years?
- Longer than a CD, but not a decade-long lockup
- Often better contractual yields than short-term options
- Aligns well with retirement timing, income bridges, or rate-locking strategies
Compare The Highest 6-Year MYGA Rates.
A 6-year fixed annuity allows you to invest a lump sum or make contributions over time, offering a stable interest rate that grows tax-deferred throughout the term. At the end of the 6 years, you can walk away with your initial investment and all interest earned in a lump sum. This plan suits those seeking secure growth and the flexibility to transfer or roll over funds from retirement accounts.
While 6-year MYGAs offer excellent mid-term stability, we recommend comparing them against the best 6-year fixed annuity rates for all terms to see if a slightly longer or shorter commitment yields a better return for October 2026.
| Insurance Company | Product Name | Guaranteed APY | A.M Best Rating | Annual Liquidity |
|---|---|---|---|---|
| Oxford Life | Multi Select MYGA | 6.35% | A | 10% |
| Sagicor | Milestone Max | 5.90% | A | 10% |
6-Year Period Certain Annuity Rates
How It Works: A 6-year period certain annuity pays income for exactly six years. It does not provide a lifetime income. Payments are contractually guaranteed for the fixed period and then stop. A 6-year term pays roughly 18.3% payout for the six-year term, then stops. If an annuitant dies before the term, the beneficiaries will receive the remaining payouts.
| Premium Deposit | Annual Payout | Monthly Payout | Total 6-Year Payout |
| $100,000 | $18,300 | $1,525.00 | $109,800 |
| $250,000 | $45,750 | $3,812.50 | $274,500 |
| $500,000 | $91,500 | $7,625.00 | $549,000 |
| $1,000,000 | $183,000 | $15,250.00 | $1,098,000 |
Request a custom quote below. Rates change weekly.
6-Year Fixed Indexed Annuity (FIA) Rates
How it works: 6-year FIA earns interest linked to the movement of a market index (like the S&P 500), completely insulated from downside market risk. You capture interest gains when the index goes up based on participation or cap limits, and your principal remains fully protected when the market drops.
The figures below represent top-performing underlying index options. Note: These are back-tested, historical illustrative maximums based on current contract participation structures—they are not a flat, contractually guaranteed annual interest rate.
| Insurer and Contract | 10-Year Historical Illustrated Return (High-End) |
|---|---|
| Athene BCA 6 2.0 | 23.89% |
| Americo Growth Commander 6 | 14% |
Why Use a Broker to Shop 6-Year Fixed Annuities?
Comparing annuity rates ensures you get the highest payouts and the best interest rates available. The right annuity can mean affordable, worth-it growth, making a significant difference over time.
At The Annuity Expert, we act as your annuity broker—not a captive agent—giving you access to the largest selection of fixed annuities from over 50 insurance companies. We help you compare rates, contract features, and payout options to find the right fit for your financial goals.
Accepted Funds
You can fund a 6-year fixed annuity using:
- Traditional IRA
- Roth IRA
- 401(k), 403(b), or 457(b) rollovers
- Inherited IRA
- Non-qualified funds (cash, savings, CDs, brokerage accounts)
We help you complete the transfer paperwork correctly to avoid tax issues and penalties.
Pros and Cons of a 6-Year Annuity
✔ Pros:
- Predictable, fixed interest rate for 6 years
- Safer than market-based investments
- Tax-deferred growth (until you withdraw)
- Higher rates than bank CDs of similar length
- No annual fees
- Can defer RMDs or delay income until needed
✘ Cons:
- Surrender charges if you withdraw early
- May limit annual penalty-free withdrawals (usually 10%)
- Interest rate is locked in—no benefit if rates rise
- Not ideal for short-term liquidity needs
Who Should Consider a 6-Year Fixed Annuity?
✔ Who Needs It:
- Retirees and pre-retirees who want guaranteed returns without market risk
- Individuals rolling over a 401(k) or IRA, but don’t need income yet
- CD buyers frustrated with low yields
- Conservative investors who value principal protection
- People looking to ladder annuities as part of a retirement income plan
✘ Who Doesn’t:
- Investors who need flexible, short-term access to funds
- People expecting to use the money in fewer than 6 years
- Those who want stock market exposure or inflation-based growth
Application Process – Step-by-Step
- Contact Us: Book a call to speak with one of our knowledgeable advisors.
- Select Your Plan: Our advisors will present a range of fixed annuity options tailored to your needs.
- Compare Rates: Review comparisons to find the most affordable, high-payout options.
- Apply Online: Easily complete your application through our secure online portal.
- Fund Your Annuity: Contribute a lump sum or roll over from a retirement account.
- Confirm Coverage: We’ll confirm your plan and provide ongoing support at no obligation.
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Our expert brokers are here to help you with 6-year fixed annuity rates. Book a call today to explore your options and plan for a stable, worry-free retirement!
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Questions From Our Readers
What happens if I die during the 6-year period?
With MYGAs and FIAs, the remaining account value passes to beneficiaries, usually as a lump sum or spousal continuation. With a 6-year period certain annuity, payments continue to your beneficiary until the six years are complete.
Can a 6-year annuity provide lifetime income?
Not automatically. A 6-year period certain annuity only pays for six years. However, many 6-year fixed indexed annuities can add a Guaranteed Lifetime Withdrawal Benefit (GLWB), allowing income for life—without giving up account control.
Are there penalties for withdrawing early?
Yes. All 6-year annuities have surrender charges during the commitment period. Most allow limited penalty-free withdrawals annually. Exceeding those limits typically triggers surrender fees and possible tax penalties if you’re under age 59½.
What happens after the 6-year annuity term is up?
After year six, surrender charges typically disappear, and you regain full control of your money. You can withdraw the funds, roll them into a new annuity using a tax-deferred 1035 exchange (for non-qualified money), renew the contract, or start an income option if available. Doing nothing is usually the worst choice because renewal rates are rarely competitive without reviewing options.
Do I have to cash out my annuity after 6 years?
No. You are not required to cash out. You can keep the annuity, exchange it into a new contract, or reposition the money into another income or growth strategy. The best move depends on interest rates, your age, taxes, and whether income is now needed.