When it comes to preparing for retirement, annuities are one of the few financial products that promise income for life.
Nationwide, a longtime name in the insurance and financial services world, offers a range of annuities designed to meet different retirement goals, from guaranteed income to growth potential. But with so many options on the market, is a Nationwide annuity right for you?
This review breaks down what Nationwide brings to the table, key features of its top annuities and what you need to know before you sign a contract.
What types of annuities does Nationwide offer?
Nationwide has a relatively wide selection of annuity products, with an emphasis on customization and optional riders.
Here are the different types of annuities Nationwide offers, along with key features and costs of specific products.
Variable annuities
Variable annuities are tax-deferred investment products that offer exposure to the stock market through a menu of subaccounts, similar to mutual funds. Your returns fluctuate based on market performance, which means you could earn more — but you could also lose money.
While Nationwide offers relatively low fees on its variable annuities, its wide array of riders can add substantial cost to your contract, and the expense ratios of underlying investments tend to be much higher than if you created a portfolio of low-cost index funds on your own.
Nationwide has more variable annuity products to choose from than any other annuity type. Here are three variable products they offer, though there are several others to choose from.
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- Minimum $5,000 investment.
- Investment options via subaccounts.
- Standard death benefit at no extra cost.
- Optional enhanced death benefit riders range from 0.20 to 0.65 percent.
- Numerous other riders available.
- Fees as high as 1.20 percent without riders plus $30 annual maintenance fee, though some fees are waived for accounts over certain amounts.
- To lock in lifetime income, an annual fee of 1.45 to 1.50 percent applies to single life contracts; a 0.15 to 0.40 percent fee applies to joint life contracts.
- Cost of underlying investments ranges from 0.40 to 2.46 percent.
- Surrender charges start at 7 percent in year one before gradually decreasing to 0 percent by year seven.
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- $10,000 minimum investment.
- Wide range of investment options.
- Optional enhanced death benefits (adds fee of 0.20 to 0.30 percent to contract).
- Fees can reach as high as 1.35 percent per year plus a yearly $50 maintenance fee, though some fees are waived for accounts above certain amounts.
- Costs of underlying mutual fund-like investments range from 0.31 to 3.09 percent per year.
- Surrender charges start at 7 percent and reduce gradually until hitting 0 percent in year five.
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- Low minimum investment of $300.
- 10 percent free annual withdrawals.
- Free standard death benefit, either the higher of contract value or return of payments, depending on age.
- Free annual withdrawal of 5 percent.
- 1.30 percent annual charge plus $30 administrative fee.
- Surrender charges start at 7 percent in year one, declining to 0 percent by year 7.
- Cost of underlying investments range from 0.40 to 1.59 percent.
Fixed index annuities
Fixed index annuities offer a mix of safety and growth by tying your returns to a market index like the S&P 500. You won’t lose money when the market drops, like you would with a variable annuity, but you’ll also face caps or participation rates which limit your returns when the market goes up.
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- $25,000 minimum investment
- Your initial investment and credited earnings are protected from market losses
- Earnings are linked to the performance of selected market indexes. Multiple indexes to choose from
- Standard death benefit equal to contract value
- Long-term care and terminal illness waivers may be available in some states
- No annual contract or administration fees outside of potential rider costs
- Surrender charges start at 9 percent in year one, gradually reduce to 0 percent by year seven
- 10 percent free annual withdrawal provision
- If withdrawals taken for RMDs exceed the free withdrawal amount, the free withdrawal amount is increased to match the RMD amount for that year.
Registered index-linked annuities
Registered index-linked annuities (RILAs) sit between variable and fixed index annuities in terms of risk and reward. You choose a market index and accept some downside risk — usually up to a pre-set limit — in exchange for the chance at higher growth than a traditional fixed product. They use buffers or floors to reduce losses rather than eliminate them completely.
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- $25,000 minimum
- Customizable protection levels (90 percent, 95 percent or 100 percent principal protection)
- Standard death benefit available, either contract value or return of premium.
- Up to 10 index strategies
- Free withdrawals up to 10 percent annually. Amount may be increased if you meet long-term care or terminal illness requirements.
- Surrender charges start at 8 percent in year one and decrease to 0 percent by year six.
- No explicit fees, though some underlying investments charge annual fees.
Fixed annuities
Fixed annuities provide guaranteed interest over a set term, typically three to 10 years, with zero market exposure. You earn a stable return, based on prevailing interest rates. The rate is usually higher than a CD, and like all annuities, you can defer taxes until you withdraw.
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- $10,000 minimum
- Single premium, deferred annuity
- Guaranteed principal and interest
- Fixed interest rate for a five-year term or seven-year term
- Rates for seven-year terms range from 4.05 to 5.25 percent as of May 1, 2025; five-year term rates range from 4.10 to 4.70 percent
- 10 percent free annual withdrawals
- Standard death benefit equal to the contract value
- No annual contract or administrative fees
- Surrender charges for the seven-year option start at 7 percent during the first year and decline to 2 percent by year seven; five-year option starts at 7 percent and decreases to 4 percent in year five.
- RMDs aren’t subject to surrender charges.
Fixed immediate annuities
Fixed immediate annuities are simple contracts that turn a lump sum of cash into a predictable stream of income starting within 30 days to one year. Once you hand over the money, the insurance company starts paying you regularly for a set period or for life. There’s no investment component — just guaranteed cash flow.
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- $10,000 minimum
- Life or term-certain payout options
- Optional cost-of-living adjustment (COLA) which increases between 1 to 5 percent
- Payments begin within 30 days to one year of purchase.
- Offers various single life and joint life options
- For period-term contracts, you can cash out up to 100 percent of your remaining guaranteed payments, though a $50 withdrawal fee applies.
- No explicit annual fees
About Nationwide
Nationwide has been around since 1926. Originally a small auto insurer for Ohio farmers, it’s grown into a Fortune 100 company offering everything from property and casualty insurance to annuities, mutual funds and financial advisory services.
Headquartered in Columbus, Ohio, Nationwide holds more than $322 billion in assets under management and maintains strong financial ratings, including an A+ from AM Best and an A+ from Standard & Poor’s.
Nationwide is a mutual company, which means it’s owned by its policyholders, not shareholders. That structure often translates into a more conservative, customer-first approach. Compared to other insurers, Nationwide’s website is easy to navigate, and finding information about current annuity rates and features is relatively painless.
The company currently offers a range of annuity products, including variable, fixed, registered index-linked and fixed immediate.
Pros and cons of Nationwide
Pros
- Wide range of annuity products with flexible options
- Solid financial strength and long history
- Transparent fees on website makes it easy to compare options
- Strong advisor network and planning tools
Cons
- Some products have high fees
- Income riders cost extra and add complexity to your contract
- Limited appeal for DIY investors since several products are sold through advisors
Bottom line
Nationwide is a strong contender if you’re shopping for an annuity. That said, annuities aren’t for everyone. The fee structures can get complicated, and the long surrender periods mean you need to be in it for the long haul.
As with any financial product, it’s critical to shop around, compare fees and benefits and consider working with a fiduciary financial advisor who isn’t just pushing a Nationwide annuity because they receive a commission from the company.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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