Best Overall Income Annuity: Nationwide Promise Select
Nationwide Promise
Product Details
- Minimum Premium: $10,000
- Maximum Premium: $2,000,000 (single) / $3,000,000 (joint)
- Issue Age: No minimum age; annuitants must be age 95 or younger
- Product Fees: No applicable fees; Payout rates vary based on age, gender and rates in effect at contract issuance
Pros
- Nationwide offers a top payout on their income annuity, making it one of the most competitive offers
- The cost of living adjustment (COLA) feature can go up to 5%, one of the highest inflation hedges available
- High maximums make this income annuity great for retirees who have a lot of available funds earmarked for guaranteed income
Cons
- Only one optional rider is available (inflation protection)
- No installment refund option
Our Take
The Nationwide Promise Select is our “Best Overall” income annuity based on competitive payouts, high inflation hedging COLA and available liquidity options. Nationwide is a stable and well-capitalized company with high credit ratings. Investors can be confident in Nationwide’s ability to be a competent steward of their savings.
The Promise Select annuity product’s high maximum contribution limits make it a good choice for retirees looking for a high level of guaranteed income. While most competitors place tentative limits at $1M or $1.5M, Nationwide allows $3M for joint annuitants before approval is needed. The ability to hedge inflation up to 5% or access the annuity’s principal makes this a flexible income option for various retirement planning situations.
Best Income Annuity for Financial Strength: MassMutual RetireEase
MassMutual RetireEase
Product Details
- Minimum Premium: $10,000
- Maximum Premium: $1,500,000
- Issue Age: Lifetime Income: 18-90 y/o; Period Certain only: Max 100 y/o
- Product Fees: No applicable fees; Payout rates vary based on age, gender and
- rates in effect at contract issuance
Pros
- Various payout and survivor customization options to fine-tune the contract to your needs
- Offers an inflation protection rider with four options for annual payout increases
- Period certain contracts offer a surrender period starting in year two, which is rare for an income annuity
Cons
- Middle-of-the-road payouts compared to competitors
- Only one optional rider is available (inflation protection)
Our Take
MassMutual’s RetireEase income annuity stands out as an excellent income annuity with a stellar financial standing based on MassMutual’s history and outstanding credit ratings. The annuity benefits from simplicity, income options and liquidity options. Individuals or couples looking for a simple, straightforward income annuity from a top carrier can look no further. It offers a variety of income payout options, making it easy to fit into a diversified retirement income plan alongside other investments.
The option to add inflation protection or access cash withdrawals on a period-certain contract makes this a flexible product for those concerned with changing income needs later in life. With prior approval, period-certain contracts can be up to 50 years. Consumers can be confident in MassMutual’s financial standing and benefit-paying ability now and in the future.
The MassMutual RetireEase income annuity is not Medicaid-eligible.
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Best Income Annuity for Changing Your Mind: Athene ActivateTM
Athene ActivateTM
Product Details
- Minimum Premium: $10,000
- Maximum Premium: $1,000,000
- Issue Age: Period Certain Only: 0-90; Single Life/Joint Life and Last Survivor: 0-80; All other: 0-85
- Product Fees: No applicable fees; Payout rates vary based on age, gender and rates in effect at contract issuance
Pros
- Athene offers a highly competitive payout on their income annuity
- The COLA feature available varies from 1% to 5%, one of the highest inflation hedges available
- The one-time withdrawal liquidity provision allows up to 90%-100% withdrawal of the remaining cumulative payments
Cons
- The liquidity provision is more limited than similar income annuities, restricted to non-qualified contracts only
Our Take
The Athene Activate immediate income annuity offers a highly competitive payout rate and a high inflation protection feature, up to 5%. Athene has good credit ratings and maintains a strong financial position. One of the differentiating features of this income annuity is the one-time withdrawal option, which allows owners to withdraw 10% to 90% of their remaining cumulative payments from the annuity. Period Certain-only contracts can take as much as 100%, terminating the contract.
The Athene Activate annuity is not Medicaid-eligible.
