The top annuity providers of 2025.

In recent years, annuity sales have surged as Americans seek ways to safeguard their retirement funds: Total annuity sales reached a record $385.4 billion in 2023, representing a 23% increase from the previous year, according to the Life Insurance Marketing and Research Association (LIMRA).

You receive a guaranteed monthly income in exchange for giving a lump sum or regular payments to an insurance company, bank, fintech, or brokerage firm when purchasing an annuity.

Immediately paying annuities are rare; most require you to defer funds for several years, with penalties for early withdrawal.

CNBC Select has identified top annuity companies across various categories. (For more details on our selection process, please refer to our methodology.)

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Best for investment options: Allianz Life

Allianz Life is a suitable investment option for those seeking both fixed index annuities and registered index-linked annuities (RILA), which provide risk limitation while still allowing for growth based on the performance of an underlying index.

Allianz Life offers annuities for purchase up to age 85.

Best for fixed annuities: Athene

Athene is the largest provider of fixed annuities in the U.S., with sales of over $27 billion in the first three quarters of 2024. Its fixed annuities have minimum initial deposits ranging from $5,000 to up to $1 million.

If you die, your beneficiaries will receive the remaining value of your Athene fixed annuity contract.

Best for immediate income: MassMutual

What is MassMutual's RetireEase single premium immediate fixed annuity for? It offers a guaranteed payment within 13 months of signing and has no contract fees. The standout benefit is that it provides income for a set period or the rest of your life. The minimum initial deposit is $10,000 and buyers can choose from monthly, quarterly, semi-annual, or yearly payouts.

Best for earning dividends: New York Life

What is this referring to? New York Life is renowned for its annuity dividends, which can enhance your payout in the long run. The company has been paying dividends annually since 1990 and is projected to make a record $2.5 billion payout in 2025.

The New York Life Premier Variable Annuity offers a rider that guarantees a 105% return on your investment after 10 years, with a minimum initial deposit of $5,000.

Best for death benefits: Nationwide

What are the features of Nationwide annuities?

Variable annuity buyers have more control over their portfolio with Nationwide's over 90 equities, bonds, and fixed accounts options.

Best for teachers: TIAA

If you're a teacher looking at annuities, consider 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.

Lower fees than competitors mean more money for you in retirement with TIAA.

Allianz Life

In 1979, North American Casualty was acquired by German conglomerate Allianz and later changed its name to Allianz Life Insurance of North America. By 2024, Allianz Life was the fourth-largest annuity provider in the U.S., according to LIMRA.

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

Minimum initial premium: $10,000

The administrative and mortality-and-expense risk fee is 1.25%, and there is a $50 annual contract fee that can be waived.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

Athene

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

Annuity options include fixed annuities, registered index-linked annuities, fixed indexed annuities, and immediate annuities.

Minimum initial premium: $5,000

No annual contract charge exists, but rider fees vary from 0.40% to 1%. The administrative and mortality-and-expense risk fees were not made public.

J.D. Power customer satisfaction ranking: Below average

NAIC complaint index: Fewer complaints than expected

MassMutual

In October 2024, MassMutual had over $19.3 billion in annuities YTD, making it a significant player in the annuity industry. Founded in 1851 and based in Springfield, Massachusetts, the company also offers life insurance and long-term care insurance.

An annuity is a type of investment that provides a steady income stream over a specified period of time. There are several types of annuities, including deferred fixed annuities, variable annuities, fixed indexed annuities, immediate annuities, and deferred income annuities.

Minimum initial premium: $10,000

The range of fund fees is between 0.54% and 2.59%, and there is a 1% fee for administrative and mortality-and-expense risks. The $40 annual contract fee can be waived for contracts worth over $100,000.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

New York Life

New York Life is renowned globally for its financial stability, receiving top ratings from A.M. Best, Fitch, and Moody's. Besides annuities, the company provides life insurance and long-term care insurance.

Fixed annuity types: Clear income advantage fixed annuity, guaranteed lifetime income annuity, guaranteed period income annuity, guaranteed future income annuity, lifetime mutual income annuity, future mutual income annuity.

Minimum initial premium: $5,000

The administrative and mortality-and-expense risk fee ranges from 1.2% to 1.6%, while the $30-$40 annual contract fee can be waived if your contract is sufficiently large.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

Nationwide

In the 1920s, Farm Bureau Mutual Automobile Insurance Company started selling auto policies nationwide. Currently, the company offers a range of financial products, including annuities, homeowners insurance, life insurance, and long-term care plans.

Annuity options include immediate, fixed, fixed indexed, variable, and registered index-linked annuities.

Minimum initial premium: $10,000

The combination administrative/mortality-and-expense risk fee is 1.3%, and the $30 annual contract fee can be waived for contracts exceeding $50,000.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

TIAA

In 1918, Andrew Carnegie founded TIAA, which offers retirement plans for employees in education, medicine, and other nonprofit fields. In 2024, TIAA paid out more than $5.5 billion in lifetime income to its retirees and had $1.3 trillion in assets under management.

Annuity types: Fixed annuities, variable annuities

Minimum initial premium: $5,000

The administrative fee ranges from 0.1% to 0.7%, while the mortality-and-expense risk fee is between 0.15% and 0.4%. For contracts exceeding $25,000, the $25 annual contract fee can be waived.

J.D. Power customer satisfaction ranking: Above average

NAIC complaint index: Fewer complaints than expected

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

What is an annuity?

A steady income stream can be obtained through an annuity, which is a contract between a buyer and an insurance company or other entity, in exchange for a lump sum or monthly premium payments.

An annuity can begin paying out immediately or be deferred for a specific period, but once it starts, it will continue to pay out for the rest of your life. While annuities differ from life insurance, some annuities include a death benefit that is either a predetermined amount or the remaining value on your contract.

Pros and cons of annuities

Types of annuities

Several annuity categories exist, distinguished by their payment schedule and arrangement.

Immediate

A lump sum payment is typically required for an immediate annuity, which guarantees income for the buyer, usually starting within a month of contract signing.

Deferred

Deferred plans, also known as annuities, allow buyers to delay receiving payments for a specified period after beginning premium payments or reaching a certain age. This can be advantageous for individuals who do not have a large sum of money to contribute.

Fixed

While fixed annuities provide a guaranteed rate of return and consistent payouts over a specified period, the opportunity for growth is limited, and the interest earned may not keep pace with inflation.

Indexed

An indexed annuity's interest rate is linked to the performance of a market index, such as the S&P 500, with built-in safeguards to control fluctuations.

Variable

The performance of the underlying investment in the market affects the payout of a variable annuity. While some offer a guaranteed minimum income, it's possible that a variable annuity may not pay out at all. There is more potential for growth, but this comes with less principal protection and higher fees.

How much do annuities cost?

The cost of annuities can exceed 3% annually, based on the provider, annuity type, age, and payout duration.

The commission on an annuity can fluctuate significantly based on the annuity type, buyer's age, and payout duration. For instance, a lump-sum immediate annuity may have a commission ranging from 1% to 3%, while a 10-year fixed index annuity can come with a fee as high as 8%.
The administrative fee for an annuity is typically between 0.3% when calculated as a percentage of the annuity's annual value or between $50 and $100 when assessed as a flat rate charge.
The mortality-and-expense risk fee compensates insurers for managing annuity contracts and providing death benefits in the event of death. It typically ranges from 0.5 to 1.5% and is often combined with the administrative fee.
Withdrawing funds from an annuity before it matures within the first seven years can result in surrender charges, which are essentially a fine. The charge can range from 5% to 25%, depending on the annuity plan.
The expense ratios for managing the underlying investments in variable and fixed index annuities can range from 0.06% to 3% per year.
Additional fees ranging from 0.5% to 1.0% are attached to add-ons such as an enhanced death benefit or guaranteed minimum income for riders.

How are annuities paid out?

Payments from annuities can be either immediate or deferred. If an IRA payment is made before age 59½, a 10% tax penalty is imposed.

Life annuity: Pays out for the remainder of your life.
A joint and survivor annuity provides a benefit to two individuals until both of them pass away, after which the payment is reduced.
A certain annuity guarantees payment for a specified duration, even if the annuitant passes away, with the beneficiary receiving the benefit.
A guaranteed term life insurance policy pays out your entire life and offers a benefit to your beneficiaries for up to 20 years.
With a systematic withdrawal annuity, you can choose the payout amount and duration, but payments are subject to tax, and there is no assurance of lifetime payments.

You can receive a lump sum payment from an annuity, but you'll be responsible for paying income taxes on any earnings.

How to choose an annuity company

To help you choose the right annuity provider, follow these steps.

Determine your priorities in retirement: do you prioritize maintaining a consistent income or leaving a legacy for your heirs? This will assist you in selecting the appropriate annuity and limiting your search to companies that offer it.
Evaluate customer satisfaction with annuities providers by reviewing J.D. Power's annual study, which ranks providers based on trust, value for price, customer service, ease of doing business, people, product offerings, digital channels, and problem resolution. Additionally, you can assess customer satisfaction by examining the National Institute of Insurance Commissioners' complaint index and customer reviews filed with the Better Business Bureau.
Assessing the financial stability of annuity companies: 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 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.
An independent broker can help you compare a wide selection of annuities, while a financial expert can provide a fuller understanding of which annuities are right for you.

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each annuity review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of annuity products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even when we earn a commission from our affiliate partners on many offers and links.

Our methodology

We analyzed data on various annuity companies, including their offerings, interest rates, fees, availability, and market share. We utilized 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. Additionally, we considered audience data from CNBC Select, such as demographics and engagement with our content and tools.

Our recommendations are ranked in order of their suitability for various investment options, including fixed annuities, immediate income, earning dividends, death benefits, and those specifically tailored to teachers and nonprofit employees.

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