Our Professional Opinion on the Nationwide Secure Growth Annuity
We recommend Nationwide Secure Growth when its guaranteed rate is competitive with other A- or better-rated fixed annuities for the same term. It is a straightforward accumulation product with useful liquidity, an optional return-of-purchase-payment guarantee, and surrender periods that align with the selected rate-guarantee period.
Nationwide is an excellent annuity company. Nationwide Life Insurance Company is rated A+ by AM Best and comfortably exceeds our minimum financial-strength standard.
Secure Growth offers 3-, 4-, 5-, and 7-year rate-guarantee choices. We like that the surrender period matches the selected term. A buyer choosing a 3-year guarantee is not trapped in a 7-year surrender schedule after the original rate expires.
We are currently in a high-interest-rate environment, so the 5- or 7-year option can make sense when the rate is competitive, and you do not expect to need the money. A longer lock reduces the risk of a shorter contract maturing after fixed-annuity rates have declined.
After the selected guarantee period ends, the contract moves to an annually declared renewal rate rather than automatically restarting another multi-year surrender period. That gives you time to compare Nationwide’s renewal rate with the rest of the market before deciding whether to remain in the contract or move the money.
The optional Return of Purchase Payment Rider is a useful feature, but it is not free in an economic sense. Nationwide does not charge a separate rider fee, but the guaranteed rate may be lower when the rider is selected. If you have sufficient liquid savings and expect to hold the contract through maturity, you may be giving up interest for protection you are unlikely to use.
The contract also provides annual penalty-free access to a portion of the account value, favorable treatment for eligible required minimum distributions, health-related waivers, and a death benefit based on the contract value. Withdrawals above the available free amount can be reduced by surrender charges and a Market Value Adjustment.
The long-term care and terminal-illness waivers can improve access to your existing annuity value, but they are not a substitute for long-term care insurance.
Secure Growth is designed for guaranteed accumulation, not flexible lifetime income. It allows traditional annuitization, but someone seeking a retirement paycheck should compare a fixed indexed annuity with a competitive guaranteed lifetime withdrawal benefit before permanently converting the account value into payments.
Bottom line: Nationwide Secure Growth is a good fixed annuity from a financially strong company. The decision comes down to whether Nationwide’s actual rate for your premium band is competitive and whether the standard contract or return-of-purchase-payment version better matches your liquidity needs.
Compare Nationwide Secure Growth with the current fixed annuity rates before selecting the 3-, 4-, 5-, or 7-year option.
What We Like
- A+ AM Best Rating: Nationwide is one of the stronger annuity insurers in the market.
- 3-, 4-, 5-, and 7-Year Choices: The term menu makes it easier to match the maturity date to your retirement plan.
- Term-Matched Surrender Periods: The withdrawal-charge period aligns with the selected rate guarantee.
- Annual Penalty-Free Access: The contract permits withdrawals up to the annual contract limit without normal surrender charges.
- Optional Return of Purchase Payment: Buyers concerned about an early full surrender can select contractual principal protection.
- No Automatic Multi-Year Re-Lock: After the initial term, the contract uses annually declared renewal rates rather than silently restarting another long surrender period.
- Contract-Value Death Benefit: Beneficiaries receive the remaining contract value before annuitization.
- Health-Related Waivers: Qualifying long-term care or terminal-illness events can provide additional access.
What We Don’t Like
- The Return-of-Purchase-Payment Version May Pay Less: The added protection can reduce the guaranteed accumulation rate.
- Market Value Adjustment: Excess withdrawals during the surrender period can be increased or reduced by changes in market interest rates.
- Premium Bands Matter: Smaller deposits may receive a lower rate than larger contracts.
- Renewal Rates Are Not Known in Advance: After the original guarantee period, the rate can change annually.
- No Flexible GLWB: Lifetime income requires traditional annuitization rather than retaining an accessible account with a guaranteed withdrawal benefit.
- The Rate Still Has to Be Competitive: Nationwide’s brand and financial strength do not justify accepting a materially lower guaranteed return.
Overview
The Nationwide Secure Growth® Fixed Annuity is a single-premium deferred fixed annuity issued by Nationwide Life Insurance Company, designed for individuals seeking guaranteed, tax-deferred growth with principal protection. It’s available in 5- and 7-year terms with a guaranteed interest rate, predictable growth, and flexible withdrawal features. This product provides moderate liquidity, optional return of premium, and basic income options via annuitization, but does not include a guaranteed lifetime withdrawal benefit (GLWB). It’s suitable for conservative savers who do not need market exposure or income riders, and it offers strong brand backing from an A+ rated insurer.
Product Type
- Annuity Type: Multi-Year Guaranteed Annuity (MYGA)
- Issuer: Nationwide Life Insurance Company
- AM Best Rating: A+ (“Superior”)
- Use Case: Safe accumulation, tax deferral, IRA/CD alternative
- Income Option: Annuitization (no income rider)
Funding Options
This annuity accepts:
- Qualified funds: IRA, Roth IRA, SEP IRA, SIMPLE IRA, 401(a), charitable remainder trusts
- Non-qualified funds: Bank accounts, CDs, savings, brokerage accounts, 1035 exchanges
Key Features
- Minimum Premium: $10,000
- Issue Ages: Up to age 90
- Available Terms: 5-year and 7-year options
- Guaranteed Interest: Fixed interest rate for the chosen term (higher for $100,000+)
- Penalty-Free Withdrawal: 10% of contract value annually after year 1
- Return of Purchase Payment Rider: Optional rider to guarantee full principal return (rate may be lower)
- Waivers: LTC, terminal illness, and RMD withdrawals allowed without surrender penalties
- Market Value Adjustment (MVA): Applies if withdrawing more than allowed during surrender charge period
- Death Benefit: Contract value paid directly to beneficiary; bypasses probate
Surrender Charges
Although surrender charges apply, you can withdraw up to 10% per year without penalty, and additional exceptions apply for:
- Required minimum distributions (RMDs)
- Terminal illness or long-term care confinement (not available in CA or NY)
- Death of the annuitant
- Annuitization
Return of Premium Option: Ensures your original investment is returned—even if you surrender early—minus withdrawals and premium taxes. However, interest credited may be lower with this rider.
What Happens After the Term Ends?
After the 5- or 7-year term ends, you have four main options:
- Withdraw 100%: Walk away with full value, no surrender charge or MVA.
- Renew: Reinvest at a new declared rate with a new surrender schedule (if offered).
- 1035 Exchange: Transfer tax-free into a new annuity (ideal for lifetime income or higher yield).
- Annuitize: Start lifetime or period-certain payments. Note: annuitization is irrevocable and not usually recommended due to loss of control.
If no action is taken, the contract may default into a renewal period. Always consult your advisor or The Annuity Expert at the end of your term.
Why Comparing Annuities Matters
Not all MYGAs are equal. Here’s what to look for:
- Rate Differences: Other A-rated carriers may offer higher fixed rates for the same term.
- GLWB Availability: If you need lifetime income, this annuity won’t meet that need. Compare it to FIAs with guaranteed income.
- Liquidity Rules: Review how each annuity handles RMDs, LTC needs, and early access.
- Post-Term Options: Many annuities auto-renew into lower-rate periods. Some allow penalty-free walkaway.
Comparing ensures you avoid surrender traps, get competitive interest, and align with your retirement income needs.
Pros and Cons
| Pros | Cons |
|---|---|
| A+ rated insurer (Nationwide) | No GLWB or flexible income rider |
| Predictable fixed-rate interest for 5 or 7 years | Interest rate may be lower with optional return of premium |
| Optional return of premium rider | Surrender charges and MVA apply if over 10% withdrawn |
| Strong legacy features: probate bypass, named beneficiaries | Annuitization is the only income option—and is irrevocable |
| LTC and terminal illness waivers | Renewal rates after the term are not guaranteed and could be lower |
| Tax-deferred growth | Not designed for growth beyond interest rate or inflation protection |
Who Should Consider This Annuity?
Best For:
- Conservative investors seeking guaranteed returns
- CD and bond alternatives for IRA or Nonqualified money
- Retirees not needing lifetime income but wanting safety and tax deferral
- Clients planning to leave funds untouched for 5–7 years
- Individuals wanting return of premium assurance with moderate liquidity
Not Recommended For:
- Clients needing income for life—this product lacks a GLWB
- Younger investors needing access before age 59½ (IRS penalty risk)
- Anyone seeking market upside or inflation-adjusted income
- Investors who require flexible liquidity beyond the 10% annual allowance
Final Verdict
Is the Nationwide Secure Growth Annuity a good annuity? Yes—for safety-focused savers who want principal guarantees, predictable interest, and basic liquidity. The brand strength of Nationwide and the option for a return of premium rider adds a layer of security, especially for conservative investors. However, if you’re looking for retirement income, higher growth potential, or index-linked performance, better options exist.
Let The Annuity Expert Help You Compare Nationwide to the Best MYGA and Income Annuities
Request free quotes now to see how this annuity stacks up against higher-yield, income-generating, or more flexible alternatives from A-rated insurers. Contact us today for personalized advice and quotes.
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