As you plan for your retirement in New York, an annuity can be a great addition to your financial portfolio. There are many options available with a range of rates.
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| Product |
Rate
|
Guarantee Period
|
Surrender Period
|
AM Best Rating
|
|---|---|---|---|---|
Assured Edge Income Builder |
3.00% | 7 Years | 7 Years | A |
|
Athene Annuity and Life Company Athene MYG NY |
3.75% | 3 Years | 3 Years | A+ |
|
Athene Annuity and Life Company Athene MYG NY |
4.55% | 7 Years | 7 Years | A+ |
|
Athene Annuity and Life Company Athene MYG NY |
4.40% | 7 Years | 7 Years | A+ |
|
Athene Annuity and Life Company Athene MYG NY |
3.80% | 3 Years | 3 Years | A+ |
Buying an Annuity in New York
Annuities approved for sale in New York adhere to specific financial protections for buyers. Therefore, if an annuity provider suggests you buy an annuity from another state or sign an application outside of New York, you will not be subject to the same protections and benefits.
New York Department of Financial Services (NYDFS) provides a database where you can confirm that your company is licensed and in good standing in New York.
One thing to be aware of is that New York’s heavy regulations, while designed to protect customers, may make some products less robust than they would be in other states.
“New York’s products don’t have anywhere near as beneficial bonuses and those little extras that they put into the policies that kind of, you know, reward people for participating,” licensed agent Jonathan Varner told Annuity.org.
New York Annuity Rate Outlook (2026)
New York annuity rates are currently near 15-year highs, driven by the Federal Reserve’s elevated interest rate environment. However, rates are expected to edge lower through the remainder of 2026 as the Fed gradually eases monetary policy.
What this means for New York buyers:
- Lock in now if you’re ready. Today’s MYGA rates are historically strong. Waiting for rate cuts to take full effect could mean lower rates in 6–12 months.
- Consider laddering across terms. Instead of putting all $400,000 into a single 7-year MYGA, split between a 3-year and 7-year product. The 3-year matures sooner, giving you the option to reinvest if rates rise or convert to income if they fall.
NY’s regulatory lag works in your favor. Because NYDFS approval takes months, NY products tend to reflect rate conditions from several months prior. When national rates start declining, NY-approved products may still carry the higher rates for a period.
New York MYGA vs CD Rate Comparison
| Term | Best NY MYGA Rate | Best NY CD Rate (est.) | MYGA Advantage | Key Difference |
| 3 years | ~4.55–4.80% | ~4.00–4.25% | +0.30–0.80% | MYGA grows tax-deferred; CD interest taxed annually |
| 5 years | ~5.10% | ~4.25–4.50% | +0.60–0.85% | MYGA rate locked entire term; CD may have call provisions |
| 7 years | ~5.15% | ~4.00–4.30% | +0.85–1.15% | Longer lock = wider MYGA advantage; CD rates drop faster for longer terms |
MYGAs in New York are backed by the NY Life Insurance Guaranty Corporation up to $500,000 per carrier, which is the highest state guaranty limit in the country. CDs are FDIC-insured up to $250,000. For amounts over $250,000, a New York MYGA actually provides higher protection than a bank CD.
Regulations and Tax Implications in New York
New York mandates heightened protections and enhanced benefits for people who buy state-approved annuities.
This includes a minimum free-look period of 10 days and a maximum of 30 days, allowing annuity buyers the chance to more thoroughly review their contracts and cancel without penalty if needed.
The state also adopted the most recent version of the Suitability and Best Interests in Life Insurance and Annuity Transactions Regulation. The regulation imposes suitability, disclosure, training and recordkeeping requirements on agents and insurers.
It requires brokers, agents and insurers to act in the best interest of the consumer when recommending and selling annuities. By law, they must consider critical factors, such as the buyer’s needs, objectives, risk tolerance and financial situation. They also must disclose any conflicts of interest or compensation arrangements.
I had a client from New York who intended to invest $2.5 million in a fixed index annuity with an income rider, guaranteeing a payout of $382,000 per year for the rest of his life. The catch was that this specific annuity was only available in states outside of New York. If he opted for an annuity within New York state with the same $2.5 million investment, his income would be nearly $100,000 less.
John Stevenson, CFFOwner and Advisor at Stevenson Retirement SolutionsJohn Stevenson, a Certified Financial Fiduciary®️, specializes in securing retirements with tax-free accounts. With a focus on guaranteed retirement, he’s ensured none of his clients suffer from market fluctuations. As a renowned educator and podcast host, John empowers thousands weekly, sharing his expertise in minimizing taxes and protecting against financial downturns.
Once you buy a New York-approved annuity, it is subject to rules to help maximize your benefits. For example, annuities that grow in value over time must maintain a certain account value. New York calculates this value using maximum charges and minimum interest rates that benefit the annuity owner. Additionally, because the distribution of death benefits in New York isn’t considered a surrender, these funds are not subject to surrender charges.
Another benefit is that New York doesn’t impose a state premium tax on annuities. It makes it stand out compared to other states like California.
However, its taxes still can be hefty. In 2024, the state income tax ranges from 4% to 10.9%. Residents of New York City and Yonkers have their own income tax rates.
Taxpayers over 59 1/2 can exclude up to $20,000 of qualified pension and annuity income. Any income over $20,000 from a private retirement plan or an out-of-state government plan is subject to New York taxes.
Looking To Buy an Annuity in New York?
New York Resources
New York annuity regulations can be complicated, but there are several state-specific resources available to help you navigate them.
Resources
- Life Insurance Company Guaranty Corporation of New York. The Life Insurance Company Guaranty Corporation of New York website shares the details of New York consumer coverage and protections.
- New York State Department of Financial Services. The New York State Department of Financial Services provides annuity-specific information and a company search portal, which you can use to confirm that a company is licensed in New York. The site also provides an outline of policyholder protections and a glossary of terms.
- New York State Department of Taxation and Finance. The New York State Department of Taxation and Finance website has tax filing links for New Yorkers with helpful tax information for retirees.
FAQs about Annuities in New York
Yes, but with an important exclusion. New York taxes annuity withdrawals as ordinary income at rates from 4% to 10.9%. However, residents age 59 ½ and older can exclude up to $20,000 of qualified pension and annuity income from their state taxable income each year. Each married couple gets their own $20,000 exclusion. New York City residents face an additional city income tax of up to 3.876%.
New York’s top annuity rates can be slightly lower than national bests because the New York Department of Financial Services (NYDFS) requires every annuity product to go through a rigorous approval process before it can be sold to NY residents. Many carriers choose not to file in New York due to the cost and time involved, which reduces competition. However, the carriers that do operate in New York have cleared the highest regulatory bar in the country, and the $500,000 guaranty association limit — double the national standard — provides extra protection.
New York offers the highest annuity guaranty protection in the country at $500,000 per insurance carrier, through the New York Life Insurance Guaranty Corporation. This is double the standard $250,000 limit in most other states. This means if an insurance company fails, up to $500,000 of your annuity value per carrier is protected.
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