The best annuity companies of 2025

Annuities have seen record sales in recent years as Americans look for ways to ensure they don’t outlive their retirement savings: Total annuity sales hit a record $385.4 billion in 2023, a 23% spike from the year before, according to industry research association LIMRA.

When you buy an annuity, you give an insurance company, bank, fintech or brokerage firm a lump sum or series of regular payments. In return, you get a guaranteed monthly income. 

Some annuities start paying immediately, but most are deferred — meaning you have to leave the funds untouched for a number of years or face stiff penalties.

CNBC Select has picked the best annuity companies in a variety of categories. (See our methodology for more on how we made our selections.)

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Who’s this for? Allianz Life is a great option for investing, as it offers both fixed index annuities and registered index-linked annuities (RILA), which limit risk while still offering growth based on an underlying index’s performance.

Standout benefits: You can purchase annuities from Allianz Life up to age 85.

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Who’s this for? Athene is the largest provider of fixed annuities in the U.S., according to LIMRA, selling over $27 billion in the first three quarters of 2024. It offers fixed annuities with minimum initial deposits ranging from $5,000 to up to $1 million.

Standout benefits: Athene’s fixed annuities have an optional return of premium death benefit rider: If you die, the remaining value of your annuity contract is paid to your beneficiaries.

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Who’s this for? Only requiring one payment, MassMutual‘s immediate income annuity starts a guaranteed payment 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.

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Who’s this for? New York Life shines for its paying dividends on annuities, which can help you increase your payout over time. It’s paid dividends annually since 1990 and will post a record $2.5 billion payout in 2025.

Standout benefits: The New York Life Premier Variable Annuity only requires a $5,000 initial deposit and includes a rider that can guarantee a return of 105% of your investment at the end of the 10-year holding period.

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Who’s this for? Many Nationwide annuities have enhanced death benefit riders, including a return of premium death benefit that ensures your beneficiaries get at least the remainder of your premiums after you die. Other riders increase the value of the 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.

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Who’s the for? If you’re a teacher looking at annuities, turn your eye toward TIAA: It offers fixed and variable annuities to employees in various nonprofit fields, including education, health and the arts. Since 2014, TIAA has shared $3 billion in profits annually with policyholders.

Standout benefits: TIAA’s fees are lower than those of some other competitors, leaving more money for you in retirement.

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North American Casualty changed its name to Allianz Life Insurance of North America a few years after being acquired by German conglomerate Allianz in 1979. Allianz Life was the fourth-largest annuity provider in the U.S. in 2024, according to LIMRA.

Annuity types: Fixed index annuities, registered index-linked annuities

Minimum initial premium: $10,000

Fees: 1.25% administrative and mortality-and-expense risk fee, $50 annual contract fee (can be waived)

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

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Athene is a leading provider of retirement savings plans and the country’s largest annuities company, with more than $28 billion in YTD sales in October 2024. Yahoo! owner Apollo Global Management acquired Athene in 2022.

Annuity types: Fixed annuities, registered index-linked annuities, fixed indexed annuities, immediate annuities

Minimum initial premium: $5,000

Fees: There is no annual contract charge but rider fees range between 0.40% and 1%. Administrative and mortality-and-expense risk fees were not disclosed.

J.D. Power customer satisfaction ranking: Below average

NAIC complaint index: Fewer complaints than expected

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MassMutual is a major player in the annuity space, with more than $19.3 billion in annuities YTD in October 2024. Dating to 1851, the Springfield, Massachusetts-based firm also issues life insurance and long-term care insurance.

Annuity type: Deferred fixed annuities, variable annuities, fixed indexed annuities, immediate annuities, deferred income annuities

Minimum initial premium: $10,000

Fees: Fund fees range from 0.54% to 2.59% and there is a 1% administrative and mortality-and-expense risk fee. The $40 annual contract fee can be waived for contracts over $100,000.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

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New York Life has a world-class reputation for financial strength, earning the highest ratings from A.M. Best, Fitch and Moody’s. In addition to annuities, New York Life offers life insurance and long-term care insurance.

Annuity types: Guaranteed lifetime income annuity, lifetime mutual income annuity, guaranteed period income annuity, guaranteed future income annuity, future mutual income annuity, clear income advantage fixed annuity

Minimum initial premium: $5,000

Fees: An administrative and mortality-and-expense risk fee of between 1.2% and 1.6%. The $30-$40 annual contract fee can be waived if your contract is large enough.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

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Nationwide began selling auto policies in the 1920s as Farm Bureau Mutual Automobile Insurance Company. Today, it sells a variety of financial products, including variable and fixed annuities, homeowners insurance, life insurance and long-term care plans.

Annuity types: immediate, fixed, fixed indexed, variable, registered index-linked annuities

Minimum initial premium: $10,000

Fees: There is a 1.3% combination administrative/mortality-and-expense risk fee. The $30 annual contract fee can be waived for contracts over $50,000

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

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Founded by steel magnate Andrew Carnegie in 1918, TIAA (Teachers Insurance and Annuity Association of America) provides retirement plans for employees in education, medicine and other nonprofit fields. TIAA paid more than $5.5 billion in lifetime income to retirees In 2024 and had $1.3 trillion in assets under management.

Annuity types: Fixed annuities, variable annuities

Minimum initial premium: $5,000

Fees: 0.1% to 0.7% administrative fee and 0.15% to 0.4% mortality-and-expense risk fee. The $25 annual contract fee can be waived for contracts over $25,000

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

A.M. Best financial strength rating: A++ (Superior)

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An annuity is a contract between a buyer and an insurance company or other entity that provides a steady income stream in return for paying premiums in a lump sum or as monthly payments.

Benefits can start immediately or be deferred for a certain number of years but, once an annuity starts paying out, it does so for the rest of your life While annuities are different from life insurance, some annuities include a death benefit that’s either a predetermined amount or the remaining value on your contract.

There are several categories of annuities, based on their payment timing and structure.

Immediate

An immediate annuity typically requires a lump sum payment and allows a buyer to start receiving guaranteed income, usually within a month of signing a contract.

Deferred

Available as variable or indexed annuities, deferred plans delay paying out for a specified number of years after you begin paying premiums — or when you reach a certain age. This can benefit buyers who don’t have a big lump sum to contribute.

Fixed

Fixed annuities have a guaranteed rate of return and offer consistent payouts over a specified period. While they ensure a steady income stream, the opportunity for growth is limited and the interest you earn 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.

Variable

With a variable annuity, how your underlying investment performs in the market influences the size of your payout. Because of that, It’s possible a variable annuity doesn’t pay out at all — although some offer a guaranteed minimum income. There’s more opportunity for growth, but also less principal protection and higher fees.

Fees associated with annuities can run more than 3% annually, depending on the provider, the type of annuity, your age and. the length of the payout period. 

• Commissions: Paid to the broker, these vary greatly 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 a 10-year fixed index annuity can come with a fee as high as 8%.
• 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 cost 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: Essentially 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%

Annuities are either immediate or deferred. The IRA levies a 10% tax penalty on payouts made before age 59½.

• 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 after one spouse dies.
• Period certain annuity: Pays out for a certain period whether you’re living or not, with a beneficiary receiving 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.

It’s also possible to take a lump-sum payment on an annuity, although you’ll owe income taxes on any gains.

While we’ve tapped the top annuity providers, it’s up to you to 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 annual 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. It can give you a snapshot of how buyers feel about their experience with an annuities company. You can also gauge how some are feeling by looking through the National Institute of Insurance Commissioners’ complaint index and
  customer reviews filed with the Better Business Bureau.
• Assess the company’s financial stability: Unlike CDs or IRAs, annuities aren’t insured by the FDIC, so buyers rely on the financial soundness of the issuer A.M. Best financial stregth 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.

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.

CNBC Select collected data points on dozens of 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 financial strength scores. We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Our recommendations are sorted by the best for investment options, for fixed annuities, for immediate income, for earning dividends, for death benefits and for teachers and nonprofit employees.

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