Americans are increasingly worried about having enough money in retirement. In a 2025 Northwestern Mutual survey, more than half of respondents (51%) said it was somewhat or very likely that they would outlive their savings.
Annuities, which provide a guaranteed monthly income for the rest of your life, are a popular strategy. According to insurance trade association LIMRA, total U.S. annuity sales reached a record high $119.2 billion in the second quarter of 2025.
Below, CNBC Select names the best annuity companies, based on investment options, dividends, immediate income and more.
To see how we made our picks, check out our methodology.
Best for investment options: Allianz Life
Allianz Life Annuities
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Annuity types
Allianz offers fixed indexed annuities and registered index-linked annuities (RILA), which rely on stock market returns to fuse growth with protection from market downturns.
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Minimum deposit
Minimum deposits range from $10,000 to $20,000.
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Fees
Allianz fixed annuities generally have no contract fees. The $50 annual contract fee for Allianz RILAs may be waived if the contract value is over $100,000
There is also a combined administrative and mortality-and-expense risk fee that averages 1.25% a year and rider fees that can range from 0.70% and 1.25%
Pros
- Available up to age 85
- Variety of fixed index and index-linked annuities
- Website offers details on offerings
Cons
- Not all products are available in all states
- Doesn’t offer fixed annuities that guarantee a certain return
- Some options have a 10-year surrender period
Who’s this for? In addition to fixed index annuities, Allianz Life offers registered index-linked annuities (RILA), which limit risk against market losses while still offering tax-deferred growth by linking to the performance of a market index, like the S&P 500.
Standout benefits: Allianz Life annuities can be purchased up to age 85.
Best for fixed annuities: Athene
Athene Annuities
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Annuity types
Immediate annuities, fixed annuities, fixed indexed annuities, registered index-linked annuities
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Minimum deposit
$10,000 for Athene Agility, Athene Protector, Athene MaxRate, Athene Ascent Pro and Athene Performance Elite
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Fees
Athene annuities do not have annual contract fees but rider fees can be between 0.40% and 1%.
Pros
- Wide variety of annuity types and accumulation options
- Highly rated for financial strength
- One of the largest providers of annuities in the U.S.
Cons
- Poor customer review ratings with Better Business Bureau
- Not all products available in all states
Who’s this for? With nearly $35 billion in total fixed market sales, Athene was the largest fixed annuities provider in 2024. It offers annuities with minimum initial deposits ranging from $5,000 to $1 million.
Standout benefits: The optional return-of-premium death benefit rider pays the remaining value of your annuity contract to your beneficiaries.
Best for immediate income: MassMutual
MassMutual Annuities
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Annuity types
MassMutual offers fixed, fixed deferred, immediate income, variable and deferred income annuities.
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Minimum deposit
From $5,000 to $10,000, depending on the plan
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Fees
The $40 annual maintenance fee for variable annuities can be waived for contracts valued at $100,000 or more. The combined administrative and mortality-and-expense risk fee is 1.00% and fund fees range from 0.54% to 2.59%.
Pros
- Above average customer satisfaction score from J.D Power
- Annuity payments can begin immediately
- Fixed deferred annuity options with no fees
Cons
- Limited information available online
- Fixed deferred annuities require $10,000 minimum initial deposit
- Not all products are available in all states
Who’s this for? Only requiring one payment, MassMutual‘s immediate income annuity starts a guaranteed cash flow within 13 months of signing.
Standout benefit: MassMutual’s RetireEase single premium immediate fixed annuity has no contract fees and provides income for a set period or the rest of your life. There’s a minimum initial deposit of $10,000, and buyers have the option of monthly, quarterly, semi-annual or yearly payouts.
Best for low-risk annuities: Gainbridge
Gainbridge Annuities
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Annuity types
Gainbridge’s FastBreak™, SteadyPace™ and ParityFlex™ are fixed annuities.
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Fees
Gainbridge annuities don’t have upfront sales charges or administrative fees. However, withdrawal fees and surrender charges may apply if you withdraw above 10% of your account’s value per year.
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Minimum deposit
The minimum deposit is $1,000 for most annuities across the platform
Pros
- No sales or administrative fees
- Fixed interest growth ideal for risk-adverse investors
- Straightforward options and an easy-to-use website
Cons
- Relatively few investment options
- Subject to 10% early withdrawal penalty
Who’s this for? Gainbridge‘s three annuity options — FastBreak, SteadyPace and ParityFlex — all grow at a fixed rate, making them a great option if you don’t want to assume a lot of risk.
Standout benefits: Gainbridge’s FastBreak annuity can provide a fixed APY that’s nearly three times greater than the average CD return while still allowing you to withdraw up to 10% of your account’s value annually.
Best for earning dividends: New York Life
New York Life Annuities
On New York Life Insurance Company’s site
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Annuity types
New York Life offers immediate income, variable and fixed deferred annuities, with some income annuities able to earn dividends. With deferred annuities, you can pay additional premiums later to add to their value.
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Minimum deposit
Minimum deposits range from $5,000 for a variable annuity to $50,000 for a Clear Income Fixed Annuity
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Fees
The $30 annual maintenance fee for variable annuities can be waived for a contract value of $100,000 or more. The combined administrative and mortality-and-expense risk fee is between 1.00% and 1.30% and the annual portfolio expenses range from 0.42% to 1.96%.
Pros
- Also offers long-term care plans and life insurance
- May earn dividends
- Can include a death benefit
Cons
- No indexed annuity options for greater growth
- Limited information online
Who’s this for? New York Life pays dividends on some of its income annuities, which can help you increase your payout over time. The 180-year-old company has paid dividends annually since 1990 and posted a record $2.5 billion payout in 2025.
Standout benefits: The New York Life Premier Variable Annuity requires only a $5,000 initial deposit and includes a rider that guarantees a return of 105% of your investment at the end of the 10-year holding period.
Best for death benefits: Nationwide
Nationwide Annuities
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Annuity types
Fxed, variable, registered index-linked, immediate and fixed indexed annuities. All plans allow early access to funds up to a specified limit and the option to leave a death benefit to a beneficiary.
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Minimum initial deposit
Minimum deposits typically range from $10,000 to $25,000.
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Fees
The $30 annual maintenance fee for variable annuities can be waived for a contract value of $50,000 or more. There is also a combination administrative/mortality-and-expense fee of 1.30% and operating expenses that range from 0.51% to 2.11%.
Pros
- Easy online annuity management
- Offers registered indexed-linked annuities (RILA)
- Highly rated for customer satisfaction by J.D. Power
Cons
- Not all products and features are available in every state
Who’s this for? Many Nationwide annuities have enhanced death benefit riders, including a return of premium death benefit that ensures your loved ones get at least the remainder of your premiums after you die. You can also add riders that increase the value of that death benefit.
Standout benefits: Nationwide has over 90 equities, bonds and fixed accounts to choose from, giving variable annuity buyers more control over their portfolio.
Best for teachers: TIAA
TIAA Annuities
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Annuity types
TIAA offers fixed and variable annuities, including an option that’s invested in real estate. Buyers can participate in profit-sharing
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Minimum initial deposit
Minimum deposits range from $2,500 to $5,000.
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Fees
$25 annual maintenance fee for variable annuities (waived if your contract value is at least $25,000). There is also a combined administrative and mortality-and-expense risk fee of between 0.15% and 0.40% and an administrative fee of between 0.10% and 0.70%.
Pros
- Payouts can grow through profit-sharing
- Minimum deposit requirement is lower than most competitors
- TIAA IRA offers lifetime income annuities if you don’t meet membership requirements
- Highly rated for customer satisfaction by J.D. Power
Cons
- TIAA membership focused on educators, government workers and nonprofit employees
- May not be useful for people who want a lump-sum annuity
Who’s this for? TIAA offers low-fee fixed and variable annuities, primarily for educators, healthcare workers, government employees and nonprofit professionals. The TIAA Traditional annuity provides guaranteed principal and a minimum interest rate.
Standout benefits: In 2025, TIAA started its TIAA IRA program, which extended lifetime income annuities to Americans who don’t meet its other eligibility requirements. It shares an average of $3 billion in profits annually with contract holders through higher interest rates, bigger payouts and loyalty bonuses.
What is an annuity?
An annuity is a financial contract between an individual and a financial institution, usually an insurance company. The contract holder makes payments, either as a lump sum or through a series of contributions, and receives regular income distributions in return on a monthly, quarterly or annual basis.
These payments can begin immediately or be deferred to a future date, depending on the terms of the contract. Once distributions begin, annuities typically provide income for the rest of the contract holder’s life.
Although annuities differ from life insurance, some contracts do include a death benefit. This benefit may be a fixed amount or the remaining value of the annuity at the time of the policyholder’s death.
Types of annuities
There are several categories of annuities, separated by their payment structure and the timing of payouts.
Immediate
Typically requiring a lump sum payment, immediate annuities allow a contract holder to start receiving guaranteed income within a month of signing a contract.
Deferred
As the name suggests, deferred annuities delay payout — either after a specified number of years of paying premiums or when the contract holder reaches a certain age. Available variable or indexed, deferred annuities benefit buyers who don’t have a large lump sum to contribute.
Fixed
Fixed annuities have a guaranteed rate of return and offer consistent payouts over a specified period. They ensure a steady income stream, but the opportunity for growth is limited and the interest earned may not keep pace with inflation.
Indexed
Interest on an indexed annuity is tied to the performance of a market index like the S&P 500, with floors and caps to limit volatility. While that can protect you from losing money in your annuity, and can also mean you miss out on potential growth.
Variable
With a variable annuity, there’s more opportunity for growth, but also higher fees and less principal protection. In addition, the performance of the underlying investment influences the size of your payout and there’s a risk that the annuity won’t pay out at all. (Some variable annuities offer a guaranteed minimum income, however.) .
How much do annuities cost?
Annuity fees can be more than 3% annually, depending on the type, the provider, your age and the length of the payout period.
Common annuity fees
- Commissions: Paid to the broker, these vary depending on the type of annuity, the age of the buyer and the length of the payout. The commission on a lump-sum immediate annuity can range from 1% to 3%, for example, while it can be as high as 8% on a 10-year fixed index annuity.
- Administrative fee: If calculated as a percentage of the annuity’s annual value, this fee is usually around 0.3%. If assessed as a flat rate charge, it’s typically between $50 and $100.
- Mortality-and-expense risk fee: This compensates the insurer for managing your annuity contract and providing a death benefit in the event of your death. It can range from 0.5 to 1.5% and is usually combined with the administrative fee.
- Surrender charges: A fine for withdrawing funds from the annuity before it matures, typically within the first seven years. The charge can range from 5% to 25%, depending on the plan.
- Expense ratios: Charged for managing the underlying investments tied to variable and fixed index annuities, expense ratios can run 0.06% to 3% annually.
- Riders: Add-ons like an enhanced death benefit or guaranteed minimum income have additional fees attached, ranging from 0.5% to 1.0%.
How are annuities paid out?
Annuities either start to pay out almost immediately or are deferred for a set amount of time. Payouts are often described in these terms:
- Life annuity: Pays out for the remainder of your life.
- Joint and survivor annuity: Pays out to two people for as long as they are both living, then provides a reduced benefit to the surviving spouse after one s.
- Period certain annuity: Pays out for a certain period, whether you’re living or not, with a beneficiary receiving the benefit if you are deceased.
- Life with guaranteed term: Pays out your entire life but also guarantees a benefit to your beneficiaries for up to 20 years.
- Systematic withdrawal annuity: This method allows you to decide the payout amount and term but payments are taxed and lifetime payments aren’t guaranteed.
While you can take a lump-sum payment on an annuity, you’ll owe income taxes on any gains. In addition, the IRS levies a 10% tax penalty on payouts made before age 59½.
How to choose an annuity company
While we’ve tapped the top annuity providers, it’s up to you to do some research to find the right one. These steps can help guide your decision.
- Set your goals: Is it more important to keep a steady income in retirement or to have a legacy for your heirs? Your priorities will help you decide on the type of annuity you want and allow you to narrow your search to companies that offer it.
- Review customer satisfaction ratings: J.D. Power’s Individual Annuity Study ranks providers based on trust, value for price, customers’ ability to get service, ease of doing business, people, product offerings, digital channels and problem resolution. You can also gauge how contract holders are feeling by reviewing the National Association of Insurance Commissioners’ complaint index and customer reviews with the Better Business Bureau and sitets like TrustPilot.
- Assess the company’s financial stability: Annuities aren’t insured by the FDIC, so buyers rely on the financial soundness of the issuer. A.M. Best’s financial strength ratings are a good indicator of a seller’s ability to meet its obligations. Fitch, Moody’s and other credit rating agencies also review annuity companies.
- Work with a professional: Annuities can be very complex but a financial expert can give you a fuller understanding of which ones are right for you. An agent has detailed information on one provider but an independent broker can help you compare a wide selection of annuities.
Pros and cons of annuities
Pros
- Guaranteed income in retirement
- No contribution limits
- Tax-deferred growth
- Can provide a death benefit to pass to heirs
Cons
- Commissions and fees can diminish returns
- Costly to exit if you decide on another strategy
- They can be difficult to understand
- Risk of losing money
Is an annuity right for me?
An annuity might be the right fit if you’re nearing retirement and are concerned about having enough to live on in your non-working years. That’s especially true if you have a low risk tolerance and have already maxed out tax-advantaged accounts like a 401(k) and IRA.
That safety comes at a cost, however. Returns on annuities are considerably smaller than those of other retirement investment accounts and fees can be quite high. In addition, money in an annuity is typically locked up, with surrender fees for early withdrawal.
But if you value peace of mind over high returns, it may very well be a fair trade-off.
Can you lose money with an annuity?
It is possible to lose money with certain types of annuities, depending on how they’re structured and what the market does. Fixed annuities, which earn a guaranteed low rate over time, are the most shielded from risk, unless the insurer fails. (That’s rare, but it’s still worth investigating a company’s financial health. )
While indexed annuities are tied to the market, they have caps and floors that can shield you from downturns. That also limits growth, however.
Variable annuities don’t have the same guardrails as fixed or indexed annuities. Your money is invested in subaccounts, and if the market declines, the value of those subaccounts declines as well. Unless you add a guaranteed minimum income rider, you could lose money with a variable annuity.
Annuity FAQs
What are the downsides of annuities?
The chief downsides of annuities include their overall complexity and the relatively high commission fees, which can eat into your growth. Annuities that are tied to market performance (i.e. variable annuities) can also lose value. Fixed annuities may not grow enough to keep up with inflation. Indexed annuities have a cap on their losses and their growth, which could limit the upsides.
Do annuities ever not pay out?
If the underlying investments perform poorly, a variable annuity with no guaranteed return could fail to pay out. A plan may also not pay out if the issuer defaults, although there are protections at the state level. Financial strength ratings from a brand like A.M. Best can give you insight into whether a company is on shaky ground.
Are annuities a good investment?
If you’re willing to put up with stiff commissions and fees, annuities can be a good way to ensure you’ll have income for the rest of your life and even provide a death benefit for your loved ones. If you’re looking for growth, however, you might find their potential is limited compared to other investment options. Ultimately, whether or not an annuity is the right fit for you depends on your financial goals and risk tolerance.
How much do annuities pay?
Most annuities have a 4% to 6% annual return, although some are as high as 8%. The amount a specific annuity pays varies based on many factors, including your age, the interest rate, the deferral period and how much you’ve paid in premiums. The type of annuity and its face value also impact how much you will receive.
Are annuities taxable?
Annuities are tax-deferred, which means you pay taxes on the interest when you make withdrawals. How much you pay depends on whether the money used to buy an annuity came from a 401(k) or other qualified plan or from after-tax funds. The IRS charges a 10% tax penalty if you take money out of your annuity before turning 59½.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every annuity review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of annuity products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select collected data points on more than 10 companies that sell annuities, including the types of annuities offered, interest rates, fees, availability and market share.
We incorporated ratings from J.D. Power’s 2024 U.S. Individual Annuity Study, the National Association of Insurance Commissioners complaint index and A.M. Best’s financial strength scores.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our choices for the best annuities are:
For investment options: Allianz Life
For fixed annuities: Athene
For immediate income: MassMutual
For low-risk annuities: Gainbridge
For earning dividends: New York Life
For death benefits: Nationwide
For teachers: TIAA
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
