Is the Athene Aviator 5 Worth It?
For the right buyer, yes, the Athene Aviator 5 is one of the more competitive fixed index annuities in the 5-year surrender category right now. The participation rates are unusually high, the surrender period is short by FIA standards, and Athene’s financial strength is about as good as it gets in the annuity industry.
That said, there are real trade-offs to understand before you sign. Two of the three index strategies are brand new, launched in 2025, so most of their “historical” performance is backtested, not actual. The surrender charges start at 10%, which is aggressive for a 5-year product. And a Market Value Adjustment can hit you if rates rise and you need out early.
Here is what you need to know.
Athene Aviator 5, At a Glance
| Carrier | Athene Annuity and Life Company |
| AM Best Rating | A+ (Superior) |
| Product Type | Fixed Index Annuity (FIA) |
| Surrender Period | 5 years |
| Minimum Premium | $10,000 |
| Maximum Premium | $1,000,000 |
| Free Withdrawals | 10% of accumulated value per year |
| Market Value Adjustment | Yes (applies on excess withdrawals) |
| States Available | Most states (not available in CA, GU, NY, PR, VI) |
| Tax Types | Non-qualified, Traditional IRA, Roth IRA |
What Is the Athene Aviator 5?
The Athene Aviator 5 is a fixed index annuity built for accumulation. You put in a lump sum, choose how to allocate across three index strategies, and your money grows based on how those indices perform, with one ironclad guarantee: you cannot lose principal to market losses. If the market drops, you earn 0%. If it rises, you earn a portion of that gain based on your crediting method.
The “5” in the name refers to the 5-year surrender period. That is shorter than most FIAs on the market, which often run 7 or 10 years. For someone who wants index-linked growth potential but does not want their money locked up for a decade, that is a meaningful difference.
Athene is the issuing carrier, an A+ rated company that has been the #1 seller of fixed annuities in the United States for three consecutive years. They manage over $300 billion in assets and are backed by Apollo Global Management. Read the full Athene company profile here. For a product that relies on an insurance company’s claims-paying ability, that financial strength matters.
If you are new to how FIAs work, our fixed index annuity guide covers the fundamentals before you dive into a specific product comparison.
How Do the Athene Aviator 5 Index Strategies Work?
The Aviator 5 comes with three index strategy options, each using a different crediting method. Most buyers will allocate across all three rather than concentrating in one.
1. BofA Multi-Asset FC 7, 1-Year Point-to-Point, 115% Participation Rate
This is the headline strategy, carrying a 115% participation rate on a 1-year point-to-point basis. That means if the BofA Multi-Asset FC 7 index gains 10% in a year, you are credited 11.5%, you actually get more than the index return.
The index itself is a custom, multi-asset, volatility-controlled index built by Bank of America. It targets 7% annualized volatility, less than half the S&P 500’s historical vol, by blending equities, bonds, and other asset classes with an automatic de-risking mechanism. It does not hold stocks directly; it holds futures contracts and adjusts its composition based on market volatility signals.
The catch: this index only launched in October 2025. Every historical data point before that date is backtested, meaning Bank of America reconstructed what the index would have returned if it had existed. Backtested numbers tend to look cleaner than live results. The actual track record here is measured in months, not years.
2. Invesco QQQ FC 7, 1-Year Point-to-Point, 115% Participation Rate
The second strategy tracks a volatility-controlled version of the Nasdaq 100 (QQQ) with a 7% vol target. Same 115% participation rate structure. Nasdaq exposure gives you more tech concentration, Apple, Microsoft, Nvidia, Amazon make up a large portion of QQQ, which historically drives higher returns but with sharper swings.
The FC 7 version dials that volatility back through a fee-control mechanism. Again, this index launched in October 2025, so historical data is backtested. You are buying the concept of Nasdaq-linked growth with a vol floor, not a product with a multi-year live return history.
3. S&P 500, 1-Year Point-to-Point, 9.25% Annual Cap
The third strategy is straightforward: if the S&P 500 gains more than 9.25% in a year, you earn 9.25%. If it gains less, you earn what it gained. If it falls, you earn 0%. The S&P 500 has been tracked since 1957 and this strategy’s historical performance is real, not simulated. It is the most transparent of the three options.
A 9.25% cap is moderate in today’s market. You will find FIAs offering caps as high as 11–12% and as low as 7%, depending on the carrier and term length.
What Does Historical Performance Look Like?
The illustration below uses actual index performance for the S&P 500 strategy and backtested data for the two newer indices. All figures assume current crediting rates (participation rates and caps) applied retroactively. This is not a guarantee of future performance, it is a simulation.
BofA Multi-Asset FC 7 (50% Allocation, 115% Participation Rate)
Hypothetical $50,000 allocation (half of a $100,000 premium)
| Period | Annualized Return | Value After 10 Years |
|---|---|---|
| Best 10-Year Period (2006–2015) | 11.82% | $152,808 |
| Lowest 10-Year Period (2015–2024) | 9.21% | $120,639 |
| Most Recent 10-Year Period (2016–2025) | 9.77% | $126,962 |
Note: BofA Multi-Asset FC 7 inception date: October 2025. Prior periods are backtested, not actual index performance.
Invesco QQQ FC 7 (25% Allocation, 115% Participation Rate)
Hypothetical $25,000 allocation
| Period | Annualized Return | Value After 10 Years |
|---|---|---|
| Best 10-Year Period (2012–2021) | 10.60% | $68,466 |
| Lowest 10-Year Period (2006–2015) | 7.02% | $49,260 |
| Most Recent 10-Year Period (2016–2025) | 9.34% | $61,046 |
Note: Invesco QQQ FC 7 inception date: October 2025. Prior periods are backtested, not actual index performance.
S&P 500 PTP Cap (25% Allocation, 9.25% Cap)
Hypothetical $25,000 allocation
| Period | Annualized Return | Value After 10 Years |
|---|---|---|
| Best 10-Year Period (2016–2025) | 7.33% | $50,735 |
| Lowest 10-Year Period (2007–2016) | 5.82% | $44,008 |
| Most Recent 10-Year Period (2016–2025) | 7.33% | $50,735 |
Note: S&P 500 historical data reflects actual index performance back to 1957. Cap rate may change at each contract anniversary.
Combined Hypothetical: $100,000 Premium, Age 65
Running the suggested 50%/25%/25% allocation across all three strategies against the most recent 10-year index data and repeating it forward produces this hypothetical projection. These numbers are not a guarantee. They are what the illustration software calculated using current participation rates and caps applied to past index performance.
| Year | Age | Contract Value (Hypothetical) | Guaranteed Minimum |
|---|---|---|---|
| 5 | 70 | $164,782 | $93,799 |
| 10 | 75 | $238,743 | $100,551 |
| 15 | 80 | $395,916 | $107,790 |
| 20 | 85 | $574,413 | $115,549 |
| 30 | 95 | $1,391,559 | $132,784 |
Hypothetical annualized return: 9.05%. Based on $100,000 initial premium, 50%/25%/25% strategy allocation, most recent 10-year index data repeated forward. Not a guarantee of future performance.
The guaranteed minimum column tells the important part of the story: even if every index strategy earns zero for 30 consecutive years, your $100,000 grows slowly via a minimum guaranteed rate. At year 10, you are guaranteed at least $100,551. You will not lose your principal.
What Are the Surrender Charges?
The Aviator 5 has a 5-year surrender charge period. If you withdraw more than 10% of your accumulated value in a single year, the excess is subject to the charge below, plus a Market Value Adjustment that can add to or reduce that penalty depending on current interest rates.
| Contract Year | Surrender Charge |
|---|---|
| Year 1 | 10% |
| Year 2 | 9% |
| Year 3 | 8% |
| Year 4 | 7% |
| Year 5 | 6% |
A 10% year-one charge is steep for a 5-year product. Most 7-year FIAs start at 9–10%, but you get two more surrender-free years. On a $200,000 annuity, a full surrender in year one would cost you $20,000 before the MVA adjustment. The free withdrawal provision does protect you to some degree, you can pull up to $20,000 per year on a $200,000 contract without penalty, but plan to leave the bulk of this money untouched for five years.
The Market Value Adjustment is an additional factor: if interest rates have risen since you bought the annuity, a surrender will likely cost you more than the published surrender charge alone. If rates have fallen, the MVA may actually work in your favor. Either way, treat this as a 5-year commitment.
What Makes the Athene Aviator 5 Different?
A few features set this product apart from the typical FIA on the market:
Daily Values
Most FIAs only credit interest at the end of a crediting period (annually, in this case). If you die in month 8 of year 1, your beneficiaries typically receive your account value with no credit for the market gains that accrued that year. The Athene Aviator 5 tracks your contract’s value daily and grants accrued credits in qualifying events, death, annuitization, terminal illness, or nursing home confinement. Your family will not leave index gains on the table if something happens mid-term.
Index Lock
If market conditions are favorable mid-year, you can lock in the current index price to protect gains already accrued during the crediting term. This gives you a degree of timing control most FIAs do not offer. (Not available on the 1-year S&P 500 strategy.)
Diversified Blend Strategy (DBS)
Rather than manually splitting your allocation across the three strategies, you can select a Diversified Blend Strategy, a preset that automatically diversifies across custom indices and rebalances annually. This simplifies ongoing management and removes the burden of annual reallocation decisions.
Strategy Preset
One step further than DBS: choose Conservative, Balanced, or Growth, and the annuity handles everything, including automated strategy transfers and rebalancing each year. For buyers who want a set-it-and-forget-it approach, this is genuinely useful.
Athene Aviator 5 Pros and Cons
What We Like
- 115% participation rate is well above the FIA market average of 50–80%
- 5-year surrender period is short, most competitors run 7–10 years
- Daily Values benefit protects your heirs from losing mid-year gains
- No added contract fees on the base product
- A+ AM Best rated carrier with $300B+ in assets
- Strategy Preset simplifies management for hands-off investors
- $10,000 minimum is accessible without large upfront commitment
What to Watch
- Two of the three indices are brand new (2025), historical data is backtested, not actual
- 10% year-one surrender charge is high for a 5-year term
- Market Value Adjustment can increase exit costs if rates rise
- S&P 500 cap of 9.25% is competitive but not exceptional
- Volatility-controlled indices trade upside potential for smoother returns
- No lifetime income rider on the base contract (accumulation-only)
- Not available in California or New York
Who Is the Athene Aviator 5 Best For?
The Aviator 5 is built for accumulation, it is not an income product. There are no guaranteed lifetime withdrawal benefit riders on this contract. If you need guaranteed income in retirement, you will want to look at FIAs with GLWB riders or a separate income annuity.
Consider the Athene Aviator 5 if you:
- Have a 5–7 year time horizon. The 5-year surrender window is realistic for money you plan to roll over at contract maturity into your next strategy.
- Want more upside than a MYGA but less risk than a variable annuity. The participation rates here are genuinely strong. In good market years, you will likely outperform what a comparable MYGA would pay.
- Are comfortable with newer indices. The BofA Multi-Asset FC 7 and Invesco QQQ FC 7 are interesting strategies on paper, but you are making a bet on how volatility-controlled indices will perform live, not just in backtests.
- Do not need the money in California or New York. If those are your states, this product is not available to you.
Tom, age 62, has $150,000 in a maturing CD. He is not ready to annuitize for income but wants to keep that money growing without stock market exposure. He plans to reassess at 67. The Aviator 5’s 5-year term lines up with his timeline, and the downside protection means his $150,000 floor is guaranteed regardless of what happens in the markets between now and then.
Who Should Look Elsewhere?
If you need retirement income now or within the next few years, this is the wrong product. Look at SPIAs, DIAs, or FIAs with income riders instead.
If the idea of a brand-new, backtested index bothers you, and it is a legitimate concern, the S&P 500 cap strategy gives you a 66-year track record to evaluate instead. You can also compare products where all index options have at least 5–10 years of live performance history.
And if you need California or New York availability, Athene’s other products or a competitor will have to serve you.
Want to see how the Aviator 5 stacks up against other fixed index annuities? Request a no-obligation quote and we will pull the current top-performing FIA options side by side.
