Is the F&G Power Accumulator Worth It?
If you want ETF-linked growth potential inside a fixed indexed annuity, the F&G Power Accumulator is one of the few products on the market built specifically around that concept. Where most FIAs tie crediting to generic volatility-controlled indices, the Power Accumulator benchmarks to actual iShares ETFs from BlackRock, giving you exposure to the S&P 500, international equities, gold, and real estate without ever putting your principal at risk.
The product comes in two versions: a 7-year and a 10-year. In a recent hypothetical illustration using current rates, a $100,000 premium in the Power Accumulator 7 grew to $221,557 over 10 years, an 8.28% geometric average annual return. That is a strong number for an annuity with full downside protection.
But illustrations are not guarantees. The participation rates can change at each anniversary. The surrender charges on the 10-year version start at 12%. And some of the most attractive index strategies use volatility-controlled indices with limited live track records. Here is the full picture.
F&G Power Accumulator, At a Glance
| Carrier | Fidelity & Guaranty Life Insurance Company |
| AM Best Rating | A (Excellent) |
| Product Type | Fixed Index Annuity (FIA) |
| Versions Available | Power Accumulator 7 (7-year) & Power Accumulator 10 (10-year) |
| Minimum Premium | $10,000 |
| Free Withdrawals | 10% of total account value per year (starting year 2) |
| Market Value Adjustment | Yes (does not apply in AK, AL, CT, ID, IL, MN, MO, MS, MT, OR, PA, WA) |
| Fixed Rate Option | 3.75% (Power Accumulator 7, current) |
| Death Benefit | Full account value paid as lump sum |
| Health Care Waivers | Nursing home, terminal illness, home health care |
| Tax Types | Non-qualified, Traditional IRA, Roth IRA |
What Is the F&G Power Accumulator?
The F&G Power Accumulator is a flexible premium fixed index annuity designed primarily for accumulation. You deposit a lump sum (or multiple premiums), choose how to allocate across up to nine index-linked crediting strategies plus a fixed rate option, and your money grows based on index performance, with a guarantee that you cannot lose a dollar of principal or previously credited interest to market declines.
What makes the Power Accumulator different from most FIAs is the ETF partnership with BlackRock. Instead of relying solely on generic indices, the Power Accumulator benchmarks several strategies directly to iShares ETFs, including the iShares Core S&P 500 (IVV), iShares Gold Trust (IAU), iShares MSCI EAFE (EFA), and iShares U.S. Real Estate (IYR). You never actually invest in these ETFs, but your interest crediting is linked to their performance.
F&G is the issuing carrier, an A-rated company per AM Best, backed by FNF Group (Fidelity National Financial), a Fortune 500 company. F&G has been in the insurance business since 1959 and currently protects over 1 million people. Read our full F&G carrier review for complete company details and live MYGA rates.
If you are new to how fixed index annuities work, our FIA guide explains the core mechanics before you dive into product-level comparisons. You can also visit F&G’s official site for product brochures and the Statement of Understanding.
How Do the Index Crediting Strategies Work?
The Power Accumulator offers more index options than most FIAs, nine indexed strategies plus a fixed account. You can split your premium across multiple strategies or concentrate in one. Here are the key options and their current crediting rates (Power Accumulator 7, as of March 2026):
1. Balanced Asset 5 Index, 170% Participation Rate (1-Year PTP)
This is the standout headline number. A 170% participation rate means if the Balanced Asset 5 index gains 8% in a year, you are credited 13.6%. In a strong year, you keep significantly more than the index return.
The Balanced Asset 5 is a volatility-controlled index built by CIBC (Canadian Imperial Bank of Commerce) that blends the iShares Core S&P 500 ETF and iShares 20+ Year Treasury Bond ETF, targeting 5% annualized volatility. The low-vol target keeps swings manageable, but it also limits the raw upside, big equity-only rallies will be muted by the bond allocation.
This strategy also comes in a 2-year point-to-point variant (245% participation, 0% spread) and higher-participation versions with an annual strategy charge.
2. BlackRock Market Advantage Index, 135% Participation Rate (1-Year PTP)
BlackRock’s proprietary multi-asset index blends eight iShares ETFs across U.S. equities, international equities, emerging markets, high-yield bonds, treasury bonds, TIPS, and commodities. It targets 6% volatility using a daily rebalancing algorithm.
At 135% participation, a 7% index gain translates to a 9.45% credit. The diversity of asset classes means this strategy may perform in environments where the S&P 500 alone is flat or slightly negative, commodity rallies, international equity outperformance, or fixed income strength can all contribute.
Also available in 2-year point-to-point (190% participation, 0% spread) and higher-participation versions with an annual charge.
3. Morgan Stanley US Equity Allocator Index, 75% Participation Rate (1-Year PTP, 0% Spread)
This strategy tracks a Morgan Stanley index that uses rolling futures exposure to the S&P 500 and Nasdaq-100, targeting 12% volatility. Higher vol target means more equity exposure, but also more potential for 0% years in downturns.
At 75% participation with no spread, a 12% index gain would credit 9.0%. The Nasdaq-100 component gives you tech-sector sensitivity that the other indices do not offer. Available with higher participation (100%) when paired with an annual strategy charge.
4. Balanced Asset 10 Index, 90% Participation Rate (1-Year PTP)
Same CIBC structure as the Balanced Asset 5 but targeting 10% volatility, roughly double the equity exposure. This translates to higher potential returns in strong markets but more frequent 0% floors in weak years. At 90% participation, a 10% index gain credits 9.0%.
5. iShares Core S&P 500 ETF (IVV), 7.25% Cap or 40% Participation
The most transparent option. The S&P 500 has a 66-year live track record. With a 7.25% annual cap, any S&P year above 7.25% is capped; any gain below that is credited in full. Down years earn 0%. The 40% participation rate option (uncapped) may outperform in very strong years, a 25% S&P rally would credit 10% vs. the 7.25% cap.
6. Alternative ETF Strategies
Three additional ETF-linked strategies offer niche asset class exposure:
- iShares Gold Trust (IAU): 40% participation rate. A hedge against inflation and dollar weakness, gold posted 13.1% annualized returns from 2019–2024.
- iShares MSCI EAFE (EFA): 40% participation rate. International developed-market equities (Europe, Japan, Australia).
- iShares U.S. Real Estate (IYR): 40% participation rate. REIT exposure providing sensitivity to commercial real estate performance.
7. Fixed Account, 3.75%
A guaranteed fixed rate, credited daily. This functions like a MYGA inside the annuity, no index risk, no market dependency. At 3.75%, it is competitive with many standalone 3-year MYGAs from A-rated carriers.
What Does Hypothetical Performance Look Like?
The illustration below is based on actual index performance data applied retroactively using the Power Accumulator 7’s current crediting rates. This is not a guarantee of future returns, it is a simulation.
Combined Hypothetical: $100,000 Premium (Power Accumulator 7)
Allocation: 25% Balanced Asset 10 (90% Par), 25% Balanced Asset 5 (170% Par), 50% Morgan Stanley US Equity Allocator (75% Par)
| Scenario | Geometric Avg. Return | Value After 10 Years |
|---|---|---|
| Most Recent (2015–2025) | 8.28% | $221,557 |
| Least Favorable | 6.63% | $189,951 |
| Most Favorable | 11.07% | $285,832 |
Based on hypothetical illustration dated March 25, 2026. Some index data is simulated prior to index inception. Current crediting rates applied retroactively. Not a guarantee of future performance.
Even in the least favorable 10-year period, $100,000 grew to nearly $190,000, roughly doubling. In the most recent decade, the combined strategies returned 8.28% annually with zero exposure to negative market years.
Year-by-Year Breakdown (Most Recent 10-Year Period)
| Year | Credited Rate | Account Value |
|---|---|---|
| 1 | 6.46% | $106,458 |
| 2 | 23.00% | $130,945 |
| 3 | 0.00% | $130,945 |
| 4 | 20.32% | $157,556 |
| 5 | 11.34% | $175,419 |
| 6 | 10.87% | $194,493 |
| 7 | 0.00% | $194,493 |
| 8 | 8.33% | $210,701 |
| 9 | 4.10% | $219,337 |
| 10 | 1.01% | $221,557 |
Notice years 3 and 7 credited 0%, the floor held, protecting the account value from what were negative index years. The gains from surrounding years more than compensated.
What Are the Surrender Charges?
The Power Accumulator comes in two versions with different surrender schedules. If you withdraw more than 10% of your total account value in a single year, the excess is subject to the applicable surrender charge plus a Market Value Adjustment.
Power Accumulator 7
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
|---|---|---|---|---|---|---|---|---|
| Charge | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 0% |
Power Accumulator 10
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Charge | 12% | 11% | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 0% |
Note: Some states have reduced surrender charge schedules (AK, AL, CA, CT, DE, FL 65+, ID, MA, MN, MS, MT, NJ, NV, OH, OK, OR, PA, SC, TX, UT, WA). In those states, the PA 10 starts at 9% and steps down to 1% by year 10.
The 12% year-one charge on the Power Accumulator 10 is among the highest in the FIA market. On a $200,000 contract, an early full surrender would cost $24,000 before the MVA adjustment. The 7-year version is more forgiving at 9%. In both cases, the 10% annual free withdrawal provision provides meaningful liquidity, you can access $20,000 per year on a $200,000 contract without penalty starting in year 2.
What Makes the Power Accumulator Different?
Real ETF Benchmarking
Most FIAs link to custom indices that are essentially black boxes, created by investment banks with limited transparency about how they work. The Power Accumulator’s ETF strategies benchmark to actual iShares ETFs from BlackRock with decades of real performance data. You can look up IVV, EFA, IAU, or IYR on any financial site and see exactly how these assets have performed historically. That is a meaningful transparency advantage.
Asset Class Diversification
The Power Accumulator lets you spread your allocation across U.S. equities, international equities, real estate, gold, and multi-asset blended strategies, all within a single annuity contract. Most FIAs offer the S&P 500 and perhaps one or two custom indices. Having access to gold (IAU) and real estate (IYR) within an FIA is genuinely unusual.
Health Care Access Waivers
If you need nursing home care, home health care, or are diagnosed with a terminal illness, F&G will waive all surrender charges and Market Value Adjustments, giving you access to your full account value. The terminal illness diagnosis must occur at least one year after the contract is issued. Home health care waiver is not available in Massachusetts.
RMD-Friendly
If you hold the Power Accumulator in a qualified account (IRA or 401k rollover), F&G will waive surrender charges and MVAs on withdrawals needed to satisfy your Required Minimum Distribution. This is important for anyone over 73 who may need to pull more than 10% to meet RMD requirements.
F&G Power Accumulator Pros and Cons
What We Like
- 170% participation rate on Balanced Asset 5 is among the highest available in any FIA
- ETF-based strategies offer more transparency than typical custom indices
- Exceptional asset class diversity, gold, real estate, international, and multi-asset within one contract
- 3.75% fixed rate option is competitive with standalone MYGAs
- Health care waivers for nursing home, terminal illness, and home health care
- RMD-friendly, no penalties on required distributions
- 7-year version available for shorter commitment
- $10,000 minimum makes it accessible
What to Watch
- 12% year-one surrender charge on PA 10 is steep, one of the highest in the market
- Market Value Adjustment can increase exit costs in a rising-rate environment
- Participation rates can be reduced at each contract anniversary (subject to minimums)
- Volatility-controlled indices cap upside in strong equity-only rallies
- S&P 500 cap of 7.25% is below the current FIA market average of 9–11%
- No income rider, this is a pure accumulation product
- Not available in New York
Who Is the F&G Power Accumulator Best For?
The Power Accumulator is an accumulation-focused FIA. There are no guaranteed lifetime income riders on this contract. If your primary goal is turning a lump sum into guaranteed monthly income, you will want to look at income-oriented FIAs or an immediate annuity instead.
Consider the F&G Power Accumulator if you:
- Want diversified index exposure beyond just the S&P 500. The gold, real estate, and international ETF strategies are a genuine differentiator. If you believe a diversified approach will outperform a pure U.S. equity bet over the next 7–10 years, this product is built for that thesis.
- Prioritize transparency in your index strategies. The iShares ETF benchmarks are publicly traded with decades of data. You can verify historical performance yourself rather than relying on carrier-provided backtests.
- Have a 7–10 year time horizon. The Power Accumulator 7 frees your money after 7 years. The PA 10 gives you a longer runway with potentially higher crediting rates.
- Are comfortable with a strong carrier that is not A+ rated. F&G’s A (Excellent) rating from AM Best is solid but one notch below top-tier carriers like Athene (A+), Allianz (A+), or Nationwide (A+). For most buyers, an A rating is more than sufficient.
Margaret, age 63, has $200,000 from a recent pension buyout. She does not need income for at least 7 years but wants her money working harder than a CD. She is concerned about putting everything in the S&P 500 at all-time highs. The Power Accumulator 7 lets her split across U.S. equities, gold, and international developed markets, all with full downside protection. If markets pull back, she earns 0% (not a loss). If they rise, her 170% participation rate on the Balanced Asset 5 strategy could outperform what a comparable MYGA would pay by a wide margin.
Who Should Look Elsewhere?
If you need income now or within the next 3–5 years, the Power Accumulator is the wrong product. It has no income rider and no annuitization option until the maturity date.
If you want the highest possible S&P 500 cap rates, carriers like Athene routinely offer caps in the 11–12% range, nearly double the Power Accumulator’s 7.25% cap. However, F&G compensates with stronger participation rates on its multi-asset and volatility-controlled strategies.
If a 7-year minimum commitment is too long, consider products with 5-year surrender periods like the Athene Aviator 5.
Want to see how the Power Accumulator compares to other fixed index annuities side by side? Request a no-obligation quote and we will run the comparison for you using current rates.
Frequently Asked Questions
What is the difference between the Power Accumulator 7 and Power Accumulator 10?
The primary difference is the surrender period. The PA 7 locks your money for 7 years with lower surrender charges (starting at 9%). The PA 10 has a 10-year commitment with higher charges (starting at 12% in most states). The PA 10 may offer slightly higher participation rates and caps than the PA 7 in exchange for the longer term, but both versions offer the same index strategies and ETF benchmarks.
Can I lose money in the F&G Power Accumulator?
You cannot lose principal or previously credited interest due to market performance. If every index strategy returns negative in a given year, you earn 0%, your account value stays flat, it does not decline. However, early withdrawals above the 10% free withdrawal limit will incur surrender charges and a Market Value Adjustment, which can reduce your cash surrender value below your original premium in the early years.
How does the participation rate work?
A participation rate determines how much of the index gain you receive. If the Balanced Asset 5 index gains 10% in a year and your participation rate is 170%, you are credited 17% (10% x 1.70). Participation rates are set at contract issue and guaranteed for the first crediting period, but F&G can adjust them at each anniversary. The adjusted rate will never fall below the contractual minimum.
What happens if I need my money before the surrender period ends?
Starting in year 2, you can withdraw up to 10% of your total account value each year without penalty. Beyond that, you will pay the applicable surrender charge plus a Market Value Adjustment. If you qualify for a health care waiver (nursing home, home health care, or terminal illness), all surrender charges and MVAs are waived.
Is the F&G Power Accumulator RMD-friendly?
Yes. If you hold the Power Accumulator in a qualified account (Traditional IRA, for example) and need to withdraw more than 10% to satisfy your Required Minimum Distribution, F&G will waive surrender charges and MVAs on the RMD amount. This is an important benefit for anyone age 73 or older.
