Is the F&G Power Accumulator 7 a Good Annuity?
The F&G Power Accumulator 7 is a 7-year fixed index annuity issued by F&G, designed for safe accumulation with a wide ETF menu. If your goal is lifetime income, see our F&G SecureIncome 7 review instead. The verdict: a 4.25% fixed account and a 10% S&P 500 cap, but the richest rates carry a 1.25% fee.
- Best for: savers 50 to 75 who want principal protection, a 7-year commitment, and the option to add money later.
- Not for: anyone who needs cash in year 1, or who wants guaranteed lifetime income.
F&G Power Accumulator 7 at a Glance
| Feature | Details |
|---|---|
| Purpose | Safe accumulation |
| Carrier | Fidelity & Guaranty Life Insurance Company (AM Best A) |
| Surrender schedule | 7 years: 9%, 9%, 8%, 7%, 6%, 5%, 4% (varies by state) |
| Market value adjustment | Yes, on withdrawals above the free amount (how an MVA works) |
| Premium | $10,000 minimum; flexible, so you can add $2,000 or more at any time |
| Issue ages | 0 to 85 (18 to 85 for IRAs) |
| Free withdrawal | 10% of account value a year in years 2 to 7; none in year 1; RMDs are free |
| Waivers | Home health care, nursing home care and terminal illness: full account value, no charge or MVA |
| Death benefit | Account value or guaranteed minimum value, whichever is greater |
| Guaranteed minimum value | $91,000 cash value in year 1, $98,798 in year 7 on $100,000 |
| Bonus | None |
| Income rider | None |
| Index options | 23 strategies on 1- and 2-year terms plus a 4.25% fixed account; some carry a 1.25% fee |
| Illustration basis | October 15, 2026; male, 60, Arizona; $100,000 non-qualified |
Full details are in the official F&G Power Accumulator brochure.
What Does the F&G Power Accumulator 7 Pay?
| Index strategy | 1-year term | 2-year term |
|---|---|---|
| Balanced Asset 5 | 235% participation; 290% with fee | 335% participation; 375% with fee |
| Balanced Asset 10 | 120% participation | 220% participation, 3% spread |
| BlackRock Market Advantage | 185% participation; 230% with fee | 260% participation; 290% with fee |
| Morgan Stanley US Equity Allocator | 105% participation; 130% with fee | 155% participation; 175% with fee |
| iShares Core S&P 500 (IVV) | 10% cap, or 55% participation | 19% cap, or 75% participation, 2.5% spread |
| iShares MSCI EAFE (EFA) | 60% participation | 95% participation, 4.5% spread |
| iShares US Real Estate (IYR) | 65% participation | 90% participation, 2.5% spread |
| iShares Gold Trust (IAU) | 40% participation | None |
| Fixed account | 4.25% (1.75% minimum) | None |
Rates as of October 15, 2026, Arizona. Every “with fee” option costs 1.25%.
- Best no-fee option: the 2-year Balanced Asset 5 at 335%, an IVV and 20+ year Treasury blend with a 5% volatility target.
- The fee buys 25 to 55 points of participation. That pays only if the index earns more than the fee costs.
- Real S&P 500 exposure: the 19% two-year cap on IVV is the cleanest option on the menu.
- Compare: see how these stack up against today’s fixed index annuity rates.
Hypothetical Historical Rate of Return
Our October 15, 2026 illustration put 100% in the 1-year iShares Core S&P 500 strategy at a 55% participation rate. It applies today’s rates to 2016 through 2025.
| Year | Hypothetical value | Cash surrender value | Guaranteed cash value |
|---|---|---|---|
| 1 | $105,830 | $96,305 | $91,000 |
| 7 | $169,561 | $163,457 | $98,798 |
| 10 | $236,939 | $236,939 | $104,076 |
- Backtest caveat: 9.01% a year came from 2016 to 2025, the best decade in the test. The worst, 2007 to 2016, earned 5.66%.
- Two zero years: 2018 and 2022 credited 0%, and F&G can lower the 55% rate each year.
- Our planning range is 4% to 7% a year, not the 9.01% shown.
- MYGA benchmark: At today's top 7-year rate of 7.10% (simple interest), $100,000 grows to about $149,700 over 7 years, a gain of $49,700. See current MYGA rates.
Hypothetical vs. guaranteed
Use our fixed annuity calculator to compare this hypothetical value to the guaranteed growth you would earn in a fixed annuity.
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F&G Power Accumulator 7 Strengths and Red Flags
What it does well
- Broad menu: 23 strategies, including gold, real estate and international ETFs that most fixed index annuities don’t offer.
- Strong fixed account: 4.25% today, with a 1.75% guaranteed minimum.
- Flexible premium: add $2,000 or more at any time, unlike most single-premium FIAs.
Red flags
- Fees on the headline rates: the top participation rates on Balanced Asset 5, BlackRock and Morgan Stanley all cost 1.25%.
- Backtest-heavy indexes: Morgan Stanley US Equity Allocator has 2 years of live history, yet shows the menu’s top backtest, 16.24%.
- No year-1 access: free withdrawals start in year 2, so early cash needs face a 9% charge plus the MVA.
- 87.5% floor: the guaranteed cash value stays below premium until year 8.
Final verdict: the F&G Power Accumulator 7 is built for safe accumulation with more index choice than most. It earns our 3.5 rating for savers who can skip year-1 withdrawals. For lifetime income, consider the F&G SecureIncome 7; for a 7-year rival, the Athene Performance Elite 7.
Compare live rates on 137 fixed index annuities or visit our annuity review database.
Other F&G Reviews
Also based on: F& G Power Accumulator brochure (ADV2295, rev. June 2026); F& G Power Accumulator 7 illustration via Annuities Genius, October 15, 2026.
This review is for educational purposes only and is not a recommendation or an offer to sell any annuity. Product features, index options, and rates can and do vary by state, and this product is not available for sale in every state. Always request a carrier illustration and work with a licensed annuity agent before you buy.
Frequently Asked Questions
What is the F&G Power Accumulator 7?
A 7-year flexible premium fixed index annuity from F&G. It links growth to iShares ETFs and custom indexes, with a 0% floor and no income rider.
Can I add money to the F&G Power Accumulator 7?
Yes. It is a flexible premium annuity, so you can add $2,000 or more at any time after you buy it.
What is the difference between the Power Accumulator 7 and 10?
The 10 uses the same index menu with a 10-year surrender period. The 7 gives you your money back three years sooner.
Is F&G a good annuity company?
Fidelity & Guaranty Life is rated A (Excellent) by AM Best. See our F&G company review.
