Planning for retirement is no small task, especially with today’s uncertain markets and fluctuating interest rates. As more Americans look for reliable income streams during their retirement years, annuities are gaining attention. But with so many options available, it’s essential to understand which annuities offer the most value in 2025. Whether you’re approaching retirement or already there, the right annuity can provide peace of mind and financial stability. Here are the top annuity picks for 2025, along with insights into what makes them stand out.
Why Annuities Still Matter in 2025
Before diving into the best annuities available this year, it’s worth taking a step back to understand their appeal. Annuities are contracts between you and an insurance company. In exchange for a lump sum or series of payments, the insurer promises to pay you a guaranteed income in the future—often for the rest of your life. This can act as a buffer against outliving your savings.
In 2025, with life expectancy increasing and market volatility continuing, annuities serve a unique role in retirement portfolios. They’re especially attractive for those looking for a “pension-like” income or those who want to reduce their exposure to market risk.
Top Annuity Picks for 2025
1. Fidelity Personal Retirement Annuity®
Fidelity’s offering remains a standout in 2025 for a few key reasons. It’s a low-cost variable annuity that gives you access to a range of investment options. The biggest appeal is its low annual fees—just 0.25% for balances under $1 million, and 0.10% for higher balances. That’s significantly below industry averages.
This annuity is ideal for individuals looking to grow their money tax-deferred while maintaining flexibility. Since it doesn’t offer a guaranteed income rider, it’s best suited for those who want investment growth before annuitizing.
2. Athene Agility 10 Fixed Indexed Annuity
Athene’s Agility 10 continues to win favor among financial advisors in 2025. It’s a fixed indexed annuity, meaning your returns are tied to the performance of a market index, like the S&P 500, but without the risk of losing your principal.
What sets this annuity apart is its built-in income rider, which provides a guaranteed lifetime income that increases the longer you wait to start withdrawals. The combination of growth potential and downside protection makes it a solid choice for those five to ten years away from retirement.
3. Lincoln Financial’s i4LIFE® Advantage
Lincoln Financial has long been a respected name in retirement products, and their i4LIFE® Advantage annuity is no exception. It’s a variable annuity with a unique income distribution method. Unlike traditional annuitization, it allows continued access to your account value even as you draw lifetime income.
This feature is especially helpful for retirees who want both guaranteed income and flexibility to access funds for emergencies or large expenses. In 2025, with inflation concerns still present, having flexibility is a key asset.
4. Nationwide’s New Heights® Indexed Annuity
If growth potential is a priority, Nationwide’s New Heights® is one to consider. This fixed indexed annuity is designed for long-term growth, with uncapped earning potential on some of its index strategies. It also comes with a guaranteed income rider for those who want lifetime income starting later.
In 2025, this annuity is especially attractive for younger pre-retirees—those in their early 50s or late 40s—who still have time to let their investment grow but want to lock in an income plan early.
Choosing the Right Annuity for You
There’s no one-size-fits-all when it comes to annuities. The right choice depends on your age, risk tolerance, income needs, and retirement timeline. Here are a few key considerations:
- Fees: Some annuities come with hefty management fees and rider costs. Be sure to understand what you’re paying for.
- Liquidity: How easily can you access your money? Some annuities have surrender charges if you withdraw early.
- Income Options: Does the annuity offer guaranteed income? Is it for life, or a set number of years?
- Inflation Protection: Does the income increase over time? If not, your purchasing power could erode over a 20- or 30-year retirement.
Final Thoughts
Annuities can be a powerful part of a well-rounded retirement plan—especially in 2025, when economic uncertainty makes predictable income even more valuable. The key is choosing the right product for your personal situation. Whether you’re seeking low fees, growth potential, or guaranteed lifetime income, there’s an annuity out there that fits the bill.