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 up in 2022, and soon!” 

Annuity rates have increased significantly in 2022 and I expect they will continue to inch upward 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 Climb as Fed Rate Hikes Continue

Fed Funds Rate Historical Yield Chart

The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage points at their September meeting and signaled additional large increases were likely to come. This rate increase will lift its benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008.

According to, 18 annuity companies will raise annuity rates effective March 1, 2022. 

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

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

Fed Rate increases have been very good for the annuity industry. Below is a comparison of the top three annuity rates from June 2021 to today’s highest annuity rates.

As you see, today’s annuity rates are double what they were just over a year ago.

Best Fixed Annuity Rates June 2021

The U.S. Treasury Yields a Good Indicator of Annuity Rates

Insurance companies invest a significant portion of their general account in high-quality bonds and US Treasuries and I have found the Treasury Yield Curves have the biggest impact on the individual annuity market’s rates.

The line chart below compares the 10 Year Treasuries Average Annual Yield to the Federal Funds Rate Average Annual Yield from 1982 to 2022. You’ll notice Treasury Yields dip shortly after the Fed Funds Rate, but typically not as abruptly. 

Annuity rates have steadily increased over the past nine months – how high will they go and when will they stop?

10 Yr US Treasury Avg Yield vs Federal Funds Rate Avg Yield 1982-2022

18 Annuity Companies Increased Annuity Rates March 2022

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Notable Annuity Rate Increases in 2022


Max Rate
$ 5
  • $100,000 Minimum
  • AM Best Rating: A
  • Interest Withdrawals


Secure Growth
$ 5
  • $100,000 Minimum
  • 10% Withdrawals
  • AM Best Rating: A+


Guaranty Rate Lock
% 5
  • $100,000 Minimum
  • 5% Withdrawals Yrs.2+
  • AM Best Rating: B+

10-Year US Treasury Yields vs 3-Year Yields

Source: Macrotrends

Best Guaranteed Annuity Rates for December 2022

TermInsurerCompany DetailsAnnuity RateAM BestApplication
2 Years Oceanview Life and Annuity Logo OceanviewHarbourview 4.60%A-
3 Years UpStream Life Upstream LifeSecure Legacy5.65%
4 Years Americo Financial Annuity Logo AMERICOPlatinum Assure5.05%A
5 Years Ibexis Annuity Logo Ibexis MYGA Plus5.80% SimpleA-
6 Years Nassau Logo NassauSimple Annuity5.25%B++
7 Years Atlantic Coast Life Logo Atlantic Coast LifeSafe Harbor 5.46%B++
8 Years American National Annuity Logo American NationalPalladium MYG5.30%A
9 Years American National Annuity Logo American NationalPalladium MYG5.30%A
10 Years Equitrust Annuity Logo EquiTrustCertainty Select5.40%B++

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.

Related Stories

Federal Reserve and Annuity Rates

The US Federal Reserve Building: Annuity Rates Increases after Feds raise interest rates

Current annuity rates often mirror the interest rates available in bonds. Generally speaking, when bond rates increase, annuity rates increase as well. 

That’s because insurance companies invest most of their general account in fixed-income securities, such as high-grade bonds.

The Federal Reserve signaled it would begin steadily raising interest rates in mid-March, its latest step toward removing stimulus to bring down inflation.

Annuity rates tend to move in the same direction as 10 Year Treasuries because insurance companies invest a large portion of their general account in high-quality bonds.

Data last week showed U.S. consumer prices rose at their fastest pace since the early 1980s, fueling market speculation for a hefty 50-basis-point hike from the Fed’s March 15-16 meeting.¹

Fed Chairman Jerome Powell said Wednesday that the central bank was ready to raise rates at its March 15-16 meeting and could continue to lift them faster than it did during the past decade.

“This is going to be a year in which we move steadily away from the very highly accommodative monetary policy that we put in place to deal with the economic effects of the pandemic,” he said at a news conference following a Fed policy meeting.²

If that holds true annuity rates may continue to rise throughout 2022.


  1. Wall Street Journal.  (2022, January 26). Fed Interest-Rate Decision Tees Up March Increase. Retrieved from:

  2. Reuters. (2022, February 17). Factbox: What global banks forecast for Fed rate hikes in 2022. Retrieved from:
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