The Best Annuity Companies and Providers of 2023

Lincoln Financial was ranked best overall due to their wide range of product availability, high financial strength rating and minimal premiums. Their longstanding dependability and minimal NAIC complaints make Lincoln Financial a universally beneficial candidate to anyone shopping for an annuity.

Lincoln Financial has been a leading provider in the annuity industry for more than a century, with over $280 billion net total admitted assets in 2022. Lincoln Financial also placed 5th in the NAIC’s Top 25 Annuity Groups and Companies by Countrywide Premium, with over $17 billion in direct annuity premiums in 2022.

Standout offerings from Lincoln include the MYGuaranteeSM Plus, which is an MYGA with two interest rate bands so that higher premiums grow faster, and the OptiBlend® FIA, which offers the choice of eight indexes to link the annuity to.

However, Lincoln Financial isn’t as transparent about fees compared to other annuity issuers. Make sure to confirm any potential withdrawal or surrender fees before purchasing an annuity from Lincoln Financial.

Nationwide specifically specializes in variable annuities, with many unique options available. Ample products available and top-notch customer satisfaction scores make Nationwide a top-tier company for variable annuities.

Each of the variable annuities Nationwide offers comes with unique features, like the Monument Advisor, which has a flat fee of $20 and over 350 investment options. Minimum premiums for Nationwide annuities range from just $300 to $25,000, and the fees for variable annuities usually come out to between 0.20% and 1.30% of the contract’s value.

Keep in mind that it would be in your best interest to watch the performance of several of Nationwide’s investment options, since they are newer to the market and potentially exposed to risk. You should also confirm if your variable annuity comes with a mandatory rider, which can reduce your contract value.

Allianz Life’s high-rated fixed indexed annuities are best for an investor looking for potential high rewards with minimal fees. Many of Allianz annuity options are highly customizable with no fees and additional services or benefits. Consider the Allianz 222, which includes an income rider at no extra cost. Allianz 222 also provides six market indices and five different crediting methods to choose from.

The provider’s index variable annuity product, Allianz Index Advantage, can be customized based on your financial priorities. Allianz offers versions of the product with an included income benefit rider, with no product fee or with features designed to work within an advisory platform.

However, compared to other issuers, Allianz Life offers minimal financial products and higher minimum premiums. If the need for a low minimum premium outweighs the benefits of low fees, you may want to consider another annuity company.

MassMutual has stood out as a highly rated annuity provider for over 170 years, offering moderate minimum premiums and surrender charges. Today, the company offers a fixed annuity, as well as two income annuities. All the annuity products have a $10,000 minimum premium and relatively low surrender charges between 4% and 7%.

MassMutual’s customization options make their income annuities appealing to those looking for flexible lifetime income. The company offers several payout options and optional inflation protection. RetireEase Choice, the deferred income option, allows annuity owners to defer payments from 13 months to 30 years after the purchase date.

Not all of MassMutual’s income annuities come with death benefit protection. Coverage varies depending on which income annuity you choose. If death benefit protection is a valuable feature to you, make sure it’s included before purchasing your annuity.

The provider’s extensive MYGA annuity offerings and strong customer satisfaction ratings make Athene’s an appealing option for investors nearing retirement. Athene offers annual free withdrawal privileges on its fixed and fixed indexed annuities, but it’s the MYGA products that offer many advantages to consumers.

With low minimum premiums (between $5,000 and $10,000) and low withdrawal charges (between 3% and 8%), Athene’s MYGAs make sense for those who want dependable tax-deferred growth. Athene also offers lifetime income, one of the biggest benefits of purchasing an annuity, on all its products.

Confirm if there are any mandatory riders for your Athene MYGA annuity before purchasing. Some riders reduce the value of your annuity’s contract.

TIAA provides affordable access to annuities for investors on a budget. While TIAA only offers a limited number of annuities, the low fees and premiums make its products readily available for everyday customers.

The TIAA Traditional fixed annuity has no fees and no minimum premium. The other fixed annuity, Investment Horizon, charges a $25 annual fee only if the contract is less than $25,000. Finally, TIAA’s Intelligent Variable annuity has a low minimum premium of $2,500 with an annual expense charge between 0.45% to 0.70% for the first 10 years.

The main potential limitation of TIAA annuities is that they aren’t available to the public. According to TIAA, certain annuity products, are only available to employees and retirees (and their family members) of nonprofit colleges and universities, public and private nonprofit elementary and secondary schools, teaching hospitals, museums, libraries and other nonprofit institutions.

American Equity provides highly rated annuities for those looking for guaranteed income and a way to leave a legacy to your loved ones. American Equity offers the EstateShield 10 Fixed Index Annuity, a 10-year retirement product designed to help you meet the financial challenges of accumulation, income and estate planning. The EstateShield 10 Fixed Index Annuity also comes with a lifetime income benefit rider automatically with a wellbeing benefit.

However, if you attempt to withdraw beyond the interest you’ve earned in one contract year, any withdrawal beyond this amount could be faced with a 9% penalty charge.

If you’re looking for a highly rated annuity company with options to keep up with inflation, consider one of New York Life’s income annuities. New York Life earned the highest AM Best Rating, A++, which indicates superior financial strength, and the lowest NAIC complaint index score of 0, which indicates little to no complaints.

New York Life’s guaranteed income annuities offer an annual increase option, which protects your income from the effects of inflation. New York Life has also been the #1 provider for income annuities since 2006, according to a 2022 LIMRA study. Their income annuity sales are expected to experience steady growth through 2026, according to a different LIMRA study.

However, New York Life does have more than 15 discounted financial products. A high number of discontinued products can raise a red flag for reliability. Some income annuities also have minimum initial premiums as high as $50,000. However, some have lower minimum premiums of $5,000.