Best Annuities 2025: Fixed Rates up to 6.80%
Discover the highest annuity rates in over a decade. Fixed annuity rates up to 6.80%, MYGA rates up to 6.45%. Compare the best retirement annuities for guaranteed income.
2025 Annuity Rates: Highest in Over a Decade
Fixed annuity rates are now ranging between 5.25% and 6.80%, fueled by recent federal rate hikes. Annuity sales have grown 70% since 2014, with over $28 billion in sales in 2024.
Best Fixed Annuity Rate
Best MYGA Rate
Sales Growth Since 2014
2024 Annual Sales
What Are the Best Annuities for 2025?
An annuity is a financial product that provides guaranteed income payments in exchange for an initial investment. Annuities are designed to help you accumulate money for retirement and then convert that money into a stream of payments during your retirement years.
Think of an annuity as a contract between you and an insurance company. You make a payment or series of payments, and in return, the insurer agrees to make periodic payments to you beginning either immediately or at some future date. While annuities focus on retirement income, they complement other retirement strategies like Medicare Advantage plans which provide healthcare coverage during retirement years.
Types of Annuities
Fixed Annuities
Guaranteed interest rate and predictable income payments
Key Features:
- Guaranteed minimum interest rate
- Principal protection
- Predictable income stream
- No market risk
Best for: Conservative investors seeking guaranteed returns
Variable Annuities
Investment options with potential for higher returns
Key Features:
- Investment sub-account options
- Potential for growth
- Death benefit protection
- Tax-deferred growth
Best for: Investors comfortable with market risk
Indexed Annuities
Returns linked to market index performance with downside protection
Key Features:
- Market upside participation
- Downside protection
- Various index options
- Guaranteed minimum values
Best for: Balanced approach to growth and protection
Planning for retirement involves both income security and healthcare coverage. Learn aboutMedicare Supplement Plan Ffor comprehensive healthcare protection alongside your annuity income strategy.
Benefits of Annuities
Guaranteed Income
Receive predictable payments for life or a specified period
Tax-Deferred Growth
Your money grows tax-deferred until you begin withdrawals
No Contribution Limits
Unlike IRAs and 401(k)s, annuities have no annual contribution limits
Principal Protection
Many annuities protect your initial investment from market downturns
Death Benefits
Provide financial security for your beneficiaries
Flexible Options
Choose from immediate or deferred payout options
How Annuities Work
Accumulation Phase
- 1You make a lump sum payment or series of payments
- 2Your money grows tax-deferred over time
- 3Interest or investment gains compound without taxation
Distribution Phase
- 1Choose when to begin receiving payments
- 2Select payment frequency and duration
- 3Receive guaranteed income payments as scheduled
Regional Considerations for Retirement Planning
Retirement planning needs can vary significantly by location due to cost of living, healthcare availability, and local insurance markets. Explore regional-specific guidance:
High-Cost Markets:
Growth Markets:
Important Considerations
Surrender Charges
Early withdrawal penalties may apply during the surrender period
Fees and Expenses
Understand all fees including management fees and rider costs
Liquidity
Limited access to your money without penalties during surrender period
Inflation Risk
Fixed payments may lose purchasing power over time due to inflation
Who Should Consider Annuities?
Good Candidates for Annuities
- Pre-retirees seeking guaranteed income
- Conservative investors wanting principal protection
- Those who have maximized other retirement accounts
- Individuals concerned about outliving their money
- People wanting tax-deferred growth
May Not Be Right For
- Young investors with long time horizons
- Those needing immediate liquidity
- Investors comfortable with market volatility
- People with limited retirement savings
- Those who need flexible access to funds
Local Market Insights
Annuity planning can vary by region due to state regulations, cost of living, and local market conditions. Explore market-specific resources for comprehensive retirement planning:
East Coast Markets
Southern Markets
Texas Markets
Getting Started with Annuities
Assess Your Needs
Determine your retirement income goals and risk tolerance to find the right annuity type.
Compare Options
Review different annuity products, features, and insurance companies to find the best fit.
Work with an Expert
Partner with a licensed agent to navigate the details and make an informed decision.
Complete Your Retirement Strategy
Healthcare Coverage
Protect your retirement income from unexpected medical costs with comprehensive Medicare coverage.
Learn About 2025 Medicare Changes →Supplemental Coverage
Fill coverage gaps with Medicare Supplement insurance for comprehensive protection.
Explore Medicare Supplement Plans →Accessibility Resources
Ensure your retirement planning resources are accessible to all family members.
View Accessibility Information →Ready to Secure Your Retirement Income?
Our licensed insurance professionals can help you understand your annuity options and find the right solution for your retirement planning needs.