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Annuity Rates Are Increasing In 2022

Federal Mint Building : Fed Rate Hikes are good for annuities

Will Annuity Rates Go Up in 2022?

One of the most common questions we get is, “Will annuity rates rise in 2022”? Finally, the answer is “Yes, annuity rates are going to go up in 2022, and soon!” 

Annuity rates have rates have increased significantly in 2022 and I expect they will continue to inch upwards in the coming months and into 2023. 18 annuity companies increased their annuity rates effective March 1, 2022 which has not happened in a very long time – if ever. 

Annuity Rates Increase After Fed Rate Hikes

Below is a comparison of the top three annuity rates from June 2021 to today’s highest annuity rates.

As you see, today’s best 3 year fixed rate is 4.20% which is 40% more than the best 5 year fixed annuity rate just over a year ago.

Best Fixed Annuity Rates June 2021

  • Best 3 Year Fixed Annuity Rate
    Best 3 Year Fixed Annuity Rate 2.30%


  • Best 5 Year Fixed Annuity Rate
    Best 5 Year Fixed Annuity Rate 3.00%


  • Best 7 Year Fixed Annuity Rate
    Best 7 Year Fixed Annuity Rate 2.80%

    Fidelity & Guaranty

Best Fixed Annuity Rates Sept. 2022

The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage points and signaled additional large increases were likely to come. The continued rate hikes are in an effort to combat inflation that remains near a 40-year high.

The decision Wednesday—unanimously supported by the Fed’s 12-member rate-setting committee—will lift its benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008.

Fed Rate increases have been very good for the annuity industry. Above I have compared the top three annuity rates from June 2021 to today’s highest annuity rates.

Fed Rate Increases in 2022

2022IncreaseDecreaseLevel (%)
9/21/202275 bps03.00 – 3.25
7/28/202275 bps02.25-2.50
6/16/202275 bps01.50-1.75
5/5/202250 bps00.75-1.00

Annuity Ownership Drives Retirement Savings Confidence

Historical 10 Year US Treasury Yields Chart

The below table shows the average annual yield for the 10 Year US Treasury from 1982 to 2022. If the 10 Year Yields keep going up annuity rates will probably continue to keep going up in 2023.

Source: Macrotrends

10-Year US Treasury Yields vs 3-Year Yields

Shaded areas indicate U.S. Recescessions. If you notice the 3-year treasury yield is greater than the 10-year yield prior to the most recent recessions. An annuity may be worth considering for a portion of your retirement portfolio because of the rate guarantees they provide.

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18 Insurer's Increased Annuity Rates March 2022

According to, 18 annuity companies will raise annuity rates effective March 1, 2022. Below are the insurers whose annuity rates are going up tomorrow, 3/1/2022.³ 

These rate increases were in anticipation of a Fed Rate hike and occured before the Fed Rate increase of 25 basis points on March 17, 2022. 

Insurer's Who Raised Annuity Rates in March 2022

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Notable Annuity Rate Increases for September 2022

ASPIDA Synergy Choice 3-Year Fixed Annuity rate increased to 4.20%.

Sentinel Security Life Personal Choice 5 Year annuity rate increased to 4.65%.

Oceanview Harbourview 6 year fixed annuity went up to 4.80% on September 19.

Top Fixed Annuity Rates September 2022

Visit our online annuity store to access the rest of today’s best annuity rates.


Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Annuities are not guaranteed by any bank or credit union and are not insured by the FDIC or any other federal government agency.

Surrender charges may apply to withdrawals during the surrender period. A 10% IRS penalty may apply to withdrawals prior to age 59 ½. Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer.

Rates that may be provided online, by fax, mail, email, or phone are estimates and are generally reflective of the best rates available for various annuity products as of the date that any rate comparisons are prepared by us.

Rates provided in this manner are not firm quotes or offers, but rather estimates which are based on information provided to us by you and by the various insurance companies quoted. Final rates and contractual provisions will always be specified in the issued contract/policy.

Annuity rates rise in 2022 a picture of stacks of coins get higher and higher

What are Annuity Rates?

An annuity rate is a percentage by which an annuity grows each year.  All annuities share some common similarities such as tax deferral and the ability to generate income guaranteed to last your lifetime.  The way an annuity credits interest varies depending on the type of annuity.

Annuity Types Comparison Chart

Principal ProtectionNoYesYesYesYes
Liquidity OptionsYesYesYesNoNo
Maintain Control of AssetYesYesYesNoNo
Guaranteed RateNoNoYesNoNo
Guaranteed IncomeYesYesYesYesYes
Cost of Living Adjustments (COLA)YesYesNoYesYes
Death BenefitYesYesYesYes/NoYes/No
LTC EnhancementsYesYesYesNoNo

Types of Annuities Explained

Fixed Annuities

Fixed annuities pay a guaranteed rate for a set period of time (usually 2 years to 10 years). An annuity is not FDIC insured, they are guaranteed by the claims-paying ability of the issuing insurance company. 

That is why it is important to consider the financial ratings of the issuing company when shopping for an annuity. Generally, the longer the annuity contract’s term the higher the annuity rate will be – but that isn’t always the case.

Fixed Index Annuities

Fixed index annuities are a type of fixed annuity that credits interest based on the performance of an external stock market index. Indexed annuities guarantee a floor of zero percent each year so you know you can never lose your money; even if the stock market crashes. 

Instead of offering a guaranteed rate like a fixed annuity, index annuities credit interest to your account when your selected index performs. When the stock market index does not perform you are credited with a zero for the contract year.

You can access today’s best-fixed index annuity rates here.

Variable Annuity 

Variable annuities earn investment returns based on the performance of the investment portfolios, known as “subaccounts,” where you choose to put your money. The return earned in a  variable annuity isn’t guaranteed. 

The value of the subaccounts you choose could go up or down. If they go up, you could make money. But, if the value of these subaccounts goes down, you could lose money. Also, income payments to you could be less than you expected.

Single-Premium Immediate Annuities

Single premium immediate annuities begin to make income payments immediately. When you annuitize you give convert your asset to income steam and give up control of your money completely. 

For this reason, SPIAs are not very popular, according to the Secure Retirement Institute, immediate annuities were only 2.29% of all annuity sales during the first 9 months of 2021.  

Find out how much an annuity would pay you using our immediate annuity calculator.

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Jason Caudill, MBA

Jason Caudill, MBA

Jason is passionate about annuities and the important role they can play inside a retirement portfolio. He's distributed more than $1.5 Billion in annuities over a 17-year career; serving in many roles, including RVP at the largest independent Annuity Brokerage Firm, VP of Marketing at a top Insurance Company, and Regional Director in the Private Client Group at a Fortune 500 Company.

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