The best annuity companies of 2026

Driven by favorable interest rates and an aging Baby Boomer demographic, U.S. annuity sales are expected to hit a near-record $450 billion in 2026, according to LIMRA.

Annuities provide a guaranteed monthly income for life, so they've become an increasingly popular option for Americans worried about outliving their retirement savings.

CNBC Select has picked the top annuity companies based on investment options, dividends, immediate income and more. To learn more about how we made our selections, check out our methodology.

Who's this for? In addition to fixed index annuities, Allianz Life offers registered index-linked annuities (RILA), which are tied to the performance of a market index, such as the S&P 500.

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

Who's this for? Athene is a mainstay in the fixed annuities space, consistently topping the sales charts for these products. It offers annuities with minimum initial deposits ranging from $5,000 to $1 million.

Standout benefits: The optional return-of-premium rider pays the remaining value of your annuity contract to your beneficiaries after you pass away, helping to build a financial legacy.

Who's this for? With just a single payment, MassMutual's immediate income annuity can provide guaranteed cash flow within 12 months of signing. These policies also have the option to add inflation protection for added peace of mind down the road.

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.

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 offers a fixed APY nearly three times the average CD return, while still allowing you to withdraw up to 10% of your account's value annually.

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, according to the company's website.

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.

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.

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.

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 later date, depending on the contract terms. 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.

There are several categories of annuities, distinguished by their payment structure and payout timing.

Immediate

Typically requiring a lump-sum payment, immediate annuities allow a contract holder to start receiving guaranteed income within a month of signing.

Deferred

As the name suggests, deferred annuities delay payouts — either after a specified number of years of premium payments or when the contract holder reaches a certain age. Available in variable or indexed forms, 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, it also means you may 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.) .

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 ranges 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 come with additional fees, ranging from 0.5% to 1.0%.

Annuities can start paying out almost immediately or be deferred for a set period. Payouts are often described in these terms:

• Life annuity: Pays out for the rest 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.
• Period certain annuity: Pays out for a set time frame, 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 guarantees a minimum term, typically up to 20 years. 
• Systematic withdrawal annuity: Allows you to decide the payout amount and term. However, 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 59 and a half.

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 narrow your search.
• 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 feel by reviewing the National Association of Insurance Commissioners' complaint index, and customer reviews with the Better Business Bureau and sites like TrustPilot.
• Assess the company's financial stability: Annuities aren't insured by the FDIC, so buyers rely on the issuer's financial soundness. 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: Once you have an idea of the options and have a few ideas of what you might like, you'll typically need to work with a financial professional to buy. You'll find two types of experts in this area: agents and brokers. An agent typically works for one insurance company, while a broker primarily works for you, helping you compare options from several companies.

It is possible to lose money with certain types of annuities, depending on their structure and market conditions. Fixed annuities, which earn a guaranteed low rate over time, are the least risky, unless the insurer fails.

While that's rare, it's still worth investigating an annuity company's financial health.

While indexed annuities are tied to the market, they have caps and floors that can shield you from downturns. However, that also limits growth.

Variable annuities don't have the same guardrails as fixed or indexed annuities. Your money is invested in sub-accounts, and if the market declines, the value of those sub-accounts declines as well. Unless you add a guaranteed minimum income rider, you could lose money with a variable annuity.

Annuities are taxable, but how much you owe depends on the annuity type and how you funded it. If you purchased an annuity with pre-tax money, through a traditional IRA or 401(k), the entire amount you withdraw is taxed as ordinary income.

For annuities purchased with after-tax dollars, only your earnings are taxable, although the IRS charges a 10% tax penalty if you take money out before age 59½.

Beneficiaries will also owe tax on any gains if the annuity pays out after the owner's death.

If you're nearing retirement and are concerned about having enough to live on in your non-working years, an annuity can be a good investment. They're especially good for people who don't want to take on much risk and have already maxed out tax-advantaged accounts like 401(k) plans and IRAs.

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.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. 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 more than 15 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 2025 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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