What's a good annuity rate in 2026?
The right annuity could lock in attractive returns for retirement, but not every high-paying option is a good deal.
In 2026, determining an ideal annuity rate depends on several factors beyond just the percentage itself. Fixed annuities and multi-year guaranteed annuities (MYGAs) currently offer rates ranging from 5.25% to 6.30% for terms between two and 10 years, with the highest 5-year rate at 6.30% and 3-year rates at 6.00%. A rate in the mid-5% range or higher is generally considered competitive, while 6% or higher is available from some top offers.
However, these figures are benchmarks rather than strict guidelines, as annuity rates fluctuate and depend on factors such as state, deposit amount, insurer, and contract provisions.
When evaluating annuity options, consider more than just the advertised rate. The insurer's financial strength is crucial, as annuities are not FDIC-insured and rely on the issuer's ability to meet guarantees. Surrender periods and withdrawal provisions also vary, impacting liquidity and flexibility. The guarantee period itself isn't always a guarantee, with market rates not always increasing neatly with longer terms.
Other annuity types, like fixed indexed annuities and immediate annuities, use different evaluation methods, making the definition of a "good" rate more nuanced. Ultimately, a competitive annuity rate in 2026 is context-dependent, requiring careful comparison across insurers and contract terms to find the right balance of return, guarantees, and flexibility for your retirement needs.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
