What is a Declared Rate on a Fixed Indexed Annuity?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is a Declared Rate on a Fixed Indexed Annuity?

Definition: A declared rate in a Fixed Indexed Annuity (FIA) is a predetermined interest rate set annually. This rate offers a guaranteed return on the annuity for a specific period, typically one year.

How It Works

  • Annual Selection: Annuitants can choose the declared rate each year instead of linking their returns to market indexes.
  • Guaranteed Return: The declared rate provides a stable, known return, regardless of market fluctuations.


  1. Predictability: Ensures a consistent return, aiding in financial planning.
  2. Flexibility: Offers an alternative to index-linked interest, useful in low-market periods.
  3. Security: Protects against market downturns by providing a guaranteed minimum return.

Example: Suppose an FIA has a declared rate of 3% for the upcoming year. An annuitant with a $100,000 investment will earn a guaranteed $3,000 in interest for that year, regardless of market performance.

YearDeclared RateInvestment ValueGuaranteed Interest


The declared rate in a Fixed Indexed Annuity is a key feature that offers stability and predictability, allowing annuitants to secure a fixed return irrespective of market movements. This tool is valuable for those seeking a balance between steady growth and protection against market volatility.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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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