Introduction
When planning for retirement, it’s essential to explore all available options, including immediate and deferred annuities. These annuity types offer different benefits depending on your financial goals and timeline. In this article, we’ll guide you through the process of finding the best immediate and deferred annuity rates and provide a list of the top rates available.
Understanding Immediate and Deferred Annuities
Before discussing the best rates, let’s clarify the differences between immediate and deferred annuities:
Immediate annuities: With an immediate annuity, you make a lump-sum payment to an insurance company, and in return, they provide you with a guaranteed stream of income for a predetermined period or for life. Payouts begin shortly after the initial investment, usually within a year.
- Deferred annuities: Deferred annuities accumulate interest on your initial investment over time, with payouts beginning at a later date, such as 5, 10, or 20 years in the future. This delay allows your investment to grow, potentially resulting in higher payouts when the annuity's income phase begins.
Immediate Annuities
Immediate annuities (Such as Single Premium Immediate Annuities) provide a guaranteed income stream that begins shortly after the purchase, usually within one year. Factors affecting immediate annuity rates include:
- Age and gender: The older the annuitant and the shorter their life expectancy, the higher the annuity rate. Gender also plays a role, as women tend to live longer than men, which can affect the payout rates.
- Policy type: The policy type, either joint or single, has a significant impact on the payouts of immediate and deferred annuities. In a joint policy, where two people receive payments until the last surviving spouse dies, the payouts are generally lower than in a single policy, where only one person receives payments. This is because the insurance company has to take into account the possibility of making payments for a longer period in a joint policy.
- Interest rates: Current interest rates in the market will impact immediate annuity rates. Higher market interest rates usually translate to higher annuity payout rates.
Advantages
- Guaranteed income stream: Immediate annuities provide a secure income stream that lasts for the annuitant's lifetime or a specified period.
- Quick income generation: Payments begin shortly after the purchase, making immediate annuities ideal for those who need income right away.
- Various payout options: Immediate annuities offer a range of payout options, allowing annuitants to tailor the income stream to their needs.
Disadvantages
- Lack of liquidity: Once purchased, immediate annuities typically cannot be reversed, limiting access to the principal investment.
- Inflation risk: The fixed income stream can lose purchasing power over time due to inflation, especially if no cost-of-living adjustments are included.
- Limited growth potential: Immediate annuities provide a stable income but do not offer the potential for significant growth compared to other investment options.
Strategies for finding the best immediate and deferred annuity rates
- Compare: Compare payout rates from multiple insurance companies, taking into account the financial strength of each issuer.
- Assess: Assess your financial needs and choose the payout option that best aligns with your goals. Consider the various payout options, such as single-life, joint-life, or period-certain annuities, to find the best fit for your needs.
- Monitor Rates: Keep an eye on interest rates in the market and consider purchasing an immediate annuity when rates are higher to lock in a higher payout rate.
- Check Surrender Charges: Assess surrender charges and fees: Review any surrender charges, administrative fees, or other costs associated with the annuity contract.
- Check financial ratings: Examine the financial strength and credit ratings of the insurance company offering the annuity to ensure they are reputable and stable.
Best Immediate Annuity Rates (Updated as of February 2026)
Unlike fixed annuities and Multi-Year Guaranteed Annuities (MYGAs), which offer predetermined and uniform interest rates for all investors, the rates in immediate annuities are not the same for everyone. Instead, they depend upon several factors that can significantly impact the amount of income an individual receives. These factors include the current interest rate environment, the age and gender of the annuitant, the chosen payout option, and the specific insurance company offering the annuity. This variability in immediate annuity rates highlights the importance of considering one’s unique circumstances and financial goals when selecting an annuity product. It also emphasizes the need to shop around, compare quotes from different insurance companies, and stay informed about market conditions to secure the most favorable rates and terms for one’s specific situation.
Through this article, we will try to find out the best immediate annuity rates by comparing the monthly payout offered by different companies based on two different scenarios and payout options.
Scenario 1a – Policy Type: Single Life Only
A single life only policy is an annuity payout option designed to provide income for the lifetime of one individual—the annuitant. Payments begin at the selected start date and continue for as long as the annuitant lives, regardless of how long that may be. This option typically offers the highest payout rate among lifetime income choices because payments stop upon the annuitant’s death, with no remaining benefits paid to beneficiaries. As a result, it is best suited for individuals who prioritize maximizing lifetime income and do not require survivor or legacy benefits from the annuity.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
60 | Male | After 12 months | $100,000 | IRA (Qualified) |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Penn Mutual Life Insurance Company | $650 | $7,800 | 7.80% | A+ |
New York Life Insurance and Annuity Corporation (NYLIAC) | $636 | $7,632 | 7.63% | A++ |
Guardian Insurance & Annuity Company | $622 | $7,464 | 7.46% | A++ |
Integrity Life Insurance Company (W&S) | $618 | $7,416 | 7.46% | A+ |
Corebridge Financial | $614 | $7,368 | 7.37% | A |
Minnesota Life Insurance Company - A Securian Co. | $610 | $7,320 | 7.32% | A+ |
Symetra Life Insurance Company | $605 | $7,260 | 7.26% | A |
American National Insurance Company | $601 | $7,212 | 7.21% | A |
Massachusetts Mutual Life Insurance Company | $599 | $7,188 | 7.19% | A++ |
Jackson National Life Insurance | $599 | $7,188 | 7.19% | A |
Pacific Life Insurance Company | $594 | $7,128 | 7.13% | A+ |
Nationwide Life Insurance Company | $590 | $7,080 | 7.08% | A+ |
United of Omaha Insurance Company (a Mutual of Omaha company) | $588 | $7,056 | 7.06% | A+ |
Midland National Life Insurance Company | $575 | $6,900 | 6.90% | A+ |
North American Company for Life and Health Insurance | $575 | $6,900 | 6.90% | A+ |
Lincoln Financial | $550 | $6,600 | 6.60% | A |
Exhibit 1: Top Immediate Annuity Rates for a hypothetical single applicant (as per Scenario 1a) as of February 2026
Scenario 1b – Policy Type: Single Life with Cash Refund
In a Cash Refund Policy, the income stream is guaranteed for your lifetime or until the total amount you invested in the contract has been fully paid out, whichever is longer. Upon your death, any remaining portion of your original investment is paid as a lump sum to the beneficiaries named on the policy. Because of this cash-refund feature, the payout rate is typically slightly lower than that of a comparable annuity option without a refund provision.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 12 months | $100,000 | IRA (Qualified) |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Penn Mutual Life Insurance Company | $603 | $7,236 | 7.24% | A+ |
New York Life Insurance and Annuity Corporation (NYLIAC) | $601 | $7,212 | 7.21% | A++ |
American National Insurance Company | $592 | $7,104 | 7.10% | A |
Integrity Life Insurance Company (W&S) | $591 | $7,092 | 7.09% | A+ |
Symetra Life Insurance Company | $588 | $7,056 | 7.06% | A |
Guardian Insurance & Annuity Company | $586 | $7,032 | 7.03% | A++ |
Minnesota Life Insurance Company - A Securian Co. | $580 | $6,960 | 6.96% | A+ |
Massachusetts Mutual Life Insurance Company | $579 | $6,948 | 6.95% | A++ |
Nationwide Life Insurance Company | $578 | $6,936 | 6.94% | A+ |
Corebridge Financial | $576 | $6,912 | 6.91% | A |
Jackson National Life Insurance | $570 | $6,840 | 6.84% | A |
Pacific Life Insurance Company | $568 | $6,816 | 6.82% | A+ |
Midland National Life Insurance Company | $561 | $6,732 | 6.73% | A+ |
North American Company for Life and Health Insurance | $561 | $6,732 | 6.73% | A+ |
Protective Life Insurance Company | $549 | $6,588 | 6.59% | A+ |
Lincoln Financial | $523 | $6,276 | 6.28% | A |
Exhibit 2: Top Immediate Annuity Rates for a hypothetical single applicant with cash-refund option (as per Scenario 1b) as of February 2026
Scenario 2a – Policy Type: Joint Life
A joint life policy is an annuity payout option designed to provide lifetime income for two individuals, typically spouses. Payments continue for as long as either annuitant is alive, ensuring ongoing income for the surviving individual after the first annuitant’s death. Because the insurer expects payments to last longer than under a single life option, the payout rate is generally lower than a single life only policy. This option is well suited for couples who prioritize income continuity and financial security for both lives over maximizing the initial payout amount.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 12 months | $100,000 | IRA (Qualified) |
Joint - 55 (Spouse) | Female | After 12 months |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Penn Mutual Life Insurance Company | $563 | $6,756 | 6.75% | A+ |
New York Life Insurance and Annuity Corporation (NYLIAC) | $550 | $6,600 | 6.60% | A++ |
Guardian Insurance & Annuity Company | $537 | $6,444 | 6.44% | A++ |
Integrity Life Insurance Company (W&S) | $534 | $6,408 | 6.41% | A+ |
Symetra Life Insurance Company | $526 | $6,312 | 6.31% | A |
American National Insurance Company | $522 | $6,264 | 6.26% | A |
Midland National Life Insurance Company | $516 | $6,192 | 6.19% | A+ |
North American Company for Life and Health Insurance | $516 | $6,192 | 6.19% | A+ |
Massachusetts Mutual Life Insurance Company | $515 | $6,180 | 6.18% | A++ |
Jackson National Life Insurance | $507 | $6,084 | 6.08% | A |
Nationwide Life Insurance Company | $501 | $6,012 | 6.01% | A+ |
Pacific Life Insurance Company | $501 | $6,012 | 6.01% | A+ |
Minnesota Life Insurance Company - A Securian Co. | $500 | $6,000 | 6.00% | A+ |
United of Omaha Insurance Company (a Mutual of Omaha company) | $498 | $5,976 | 5.98% | A+ |
Corebridge Financial | $484 | $5,808 | 5.81% | A |
Lincoln Financial | $459 | $5,508 | 5.51% | A |
Exhibit 3: Top Immediate Annuity Rates for a hypothetical joint applicant (as per Scenario 2a) as of February 2026
Scenario 2b – Policy Type: Joint Life with Cash Refund
A joint life with cash refund policy is an annuity payout option that provides lifetime income for two individuals, typically spouses, with an added refund feature. Payments continue for as long as either annuitant is alive, and if both annuitants pass away before the total income paid equals the original premium, the remaining balance is paid as a lump sum to the named beneficiaries. Because this option combines lifetime income for two lives with a refund guarantee, the payout rate is lower than both single life and standard joint life options. It is best suited for couples who want lifetime income security while also preserving the possibility of leaving a residual benefit to their heirs.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 12 months | $100,000 | IRA (Qualified) |
Joint - 55 (Spouse) | Female | After 12 months |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Penn Mutual Life Insurance Company | $556 | $6,672 | 6.67% | A+ |
New York Life Insurance and Annuity Corporation (NYLIAC) | $542 | $6,504 | 6.50% | A++ |
Integrity Life Insurance Company (W&S) | $533 | $6,396 | 6.40% | A+ |
Guardian Insurance & Annuity Company | $532 | $6,384 | 6.38% | A++ |
Symetra Life Insurance Company | $528 | $6,336 | 6.34% | A |
Massachusetts Mutual Life Insurance Company | $514 | $6,168 | 6.17% | A++ |
Nationwide Life Insurance Company | $507 | $6,084 | 6.08% | A+ |
Pacific Life Insurance Company | $500 | $6,000 | 6.00% | A+ |
Minnesota Life Insurance Company - A Securian Co. | $499 | $5,988 | 5.99% | A+ |
Corebridge Financial | $483 | $5,796 | 5.79% | A |
Protective Life Insurance Company | $466 | $5,592 | 5.59% | A+ |
Lincoln Financial | $461 | $5,532 | 5.53% | A |
Exhibit 4: Top Immediate Annuity Rates for a hypothetical joint applicant with a cash-refund option (as per Scenario 2b) as of February 2026
Deferred Income Annuity Rates (Updated as of February 2026)
A Deferred Income Annuity, like an immediate annuity, provides a guaranteed income stream, but payments begin after a waiting period (the deferral period). The deferral period can range from a few years to several decades, depending on the terms of the contract.
As for the best deferred annuity rates, they vary depending on factors such as the insurance company, annuity type, deferral period, and current interest rates.
In the following section, we will find the best deferred annuity rates by comparing monthly payouts from different companies across two scenarios and payout options.
Here are the top deferred annuity rates as of February 2026 for a hypothetical single applicant under Scenario 3a.
Scenario 3a – Policy Type: Single
A single life only policy is an annuity payout option designed to provide income for the lifetime of one individual—the annuitant. Payments begin at the selected start date and continue for as long as the annuitant lives, regardless of how long that may be. This option typically offers the highest payout rate among lifetime income choices because payments stop upon the annuitant’s death, with no remaining benefits paid to beneficiaries. As a result, it is best suited for individuals who prioritize maximizing lifetime income and do not require survivor or legacy benefits from the annuity.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 10 Years | $100,000 | IRA (Qualified) |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Symetra Life Insurance Company | $1,305 | $15,660 | 15.67% | A |
Guardian Insurance & Annuity Company | $1,291 | $15,492 | 15.49% | A++ |
Global Atlantic - Forethought Life Insurance Company | $1,248 | $14,976 | 14.97% | A |
Integrity Life Insurance Company (W&S) | $1,245 | $14,940 | 14.94% | A+ |
New York Life Insurance and Annuity Corporation | $1,239 | $14,868 | 14.87% | A++ |
Corebridge Financial | $1,133 | 13596 | 13.59% | A |
United of Omaha Insurance Company (a Mutual of Omaha company) | $1,125 | $13,500 | 13.50% | A+ |
Pacific Life Insurance Company | $1,113 | $13,356 | 13.36% | A+ |
Lincoln Financial | $1,051 | $12,612 | 12.61% | A |
Exhibit 5: Top Deferred Annuity Rates for a hypothetical single applicant (as per Scenario 3a) as of February 2026
When comparing immediate annuities and deferred annuities, you’ll notice a significant difference in payout rates. Unlike immediate annuities, deferred annuities have a waiting period, known as the deferral period, before payments begin. This period can range from a few years to several decades, during which the insurance company invests the premium, allowing it to grow tax-deferred. As a result, the payout rates for deferred annuities are generally higher than those for immediate annuities.
Scenario 3b – Policy Type: Single with Cash Refund
In a Cash Refund Policy, the income stream is guaranteed for your lifetime or until the total amount you invested in the contract has been fully paid out, whichever is longer. Upon your death, any remaining portion of your original investment is paid as a lump sum to the beneficiaries named on the policy. Because of this cash-refund feature, the payout rate is typically slightly lower than that of a comparable annuity option without a refund provision.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 10 Rears | $100,000 | IRA (Qualified) |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Symetra Life Insurance Company | $1,201 | $14,412 | 14.41% | A |
Guardian Insurance & Annuity Company | $1,200 | $14,400 | 14.40% | A++ |
New York Life Insurance and Annuity Corporation | $1,187 | $14,244 | 14.24% | A++ |
Massachusetts Mutual Life Insurance Company | $1,163 | $13,956 | 13.96% | A++ |
Integrity Life Insurance Company (W&S) | $1,146 | $13,752 | 13.75% | A+ |
United of Omaha Insurance Company (a Mutual of Omaha company) | $1,032 | $12,384 | 12.38% | A+ |
Global Atlantic - Forethought Life Insurance Company | $1,024 | $12,288 | 12.29% | A |
Pacific Life Insurance Company | $1,019 | $12,228 | 12.23% | A+ |
Corebridge Financial | $1,009 | $12,108 | 12.11% | A |
Lincoln Financial | $960 | $11,520 | 11.52% | A |
Exhibit 6: Top Deferred Annuity Rates for a hypothetical single applicant with cash refund option (as per Scenario 3b) as of February 2026
Scenario 4a – Policy Type: Joint Life Only
A joint life policy is an annuity payout option designed to provide deferred lifetime income for two individuals, typically spouses. Payments continue for as long as either annuitant is alive, ensuring ongoing income for the surviving individual after the first annuitant’s death. Because the insurer expects payments to last longer than under a single life option, the payout rate is generally lower than a single life only policy. This option is well-suited for couples who prioritize income continuity and financial security for both lives over maximizing the initial payout amount.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 10 Years | $100,000 | IRA (Qualified) |
Joint - 55 (Spouse) | Female | After 10 Years |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Guardian Insurance & Annuity Company | $1,000 | $12,000 | 12.00% | A++ |
Symetra Life Insurance Company | 985 | $11,820 | 11.82% | A |
New York Life Insurance and Annuity Corporation | 957 | $11,484 | 11.48% | A++ |
Integrity Life Insurance Company (W&S) | 947 | $11,364 | 11.36% | A+ |
Global Atlantic - Forethought Life Insurance Company | 924 | $11,088 | 11.09% | A |
United of Omaha Insurance Company (a Mutual of Omaha company) | 843 | $10,116 | 10.12% | A+ |
Pacific Life Insurance Company | 825 | $9,900 | 9.90% | A+ |
Lincoln Financial | 766 | $9,192 | 9.19% | A |
Corebridge Financial | 744 | $8,928 | 8.93% | A |
Exhibit 7: Top Deferred Annuity Rates for a hypothetical joint applicant (as per Scenario 4a) as of February 2026
Scenario 4b – Policy Type: Joint Life with Cash Refund
A joint life with cash refund policy is an annuity payout option that provides deferred lifetime income for two individuals, typically spouses, with an added refund feature. Payments continue for as long as either annuitant is alive, and if both annuitants pass away before the total income paid equals the original premium, the remaining balance is paid as a lump sum to the named beneficiaries. Because this option combines lifetime income for two lives with a refund guarantee, the payout rate is lower than both single life and standard joint life options. It is best suited for couples who want lifetime income security while also preserving the possibility of leaving a residual benefit to their heirs.
| Age | Gender | Payout Start | Premium | Funding |
|---|---|---|---|---|
Primary - 60 | Male | After 10 Years | $100,000 | IRA (Qualified) |
Joint - 55 (Spouse) | Female | After 10 Years |
| Annuity Company | Monthly Income | Annual Income | Annual Payout Rate | AM Best Rating |
|---|---|---|---|---|
Guardian Insurance & Annuity Company | $993 | $11,916 | 11.92% | A++ |
Symetra Life Insurance Company | $980 | $11,760 | 11.76% | A |
Massachusetts Mutual Life Insurance Company | $954 | $11,448 | 11.45% | A++ |
New York Life Insurance and Annuity Corporation | $951 | $11,412 | 11.41% | A++ |
Integrity Life Insurance Company (W&S) | $941 | $11,292 | 11.29% | A+ |
Global Atlantic - Forethought Life Insurance Company | $906 | $10,872 | 10.87% | A |
United of Omaha Insurance Company (a Mutual of Omaha company) | $839 | $10,068 | 10.07% | A+ |
Pacific Life Insurance Company | $822 | $9,864 | 9.86% | A+ |
Lincoln Financial | $769 | $9,228 | 9.23% | A |
Corebridge Financial | $738 | $8,856 | 8.86% | A |
Exhibit 8: Top Deferred Annuity Rates for a hypothetical joint applicant with cash refund option (as per Scenario 4b) as of February 2026
It’s also worth noting that the best rates for deferred annuities can vary depending on the policy type. This highlights the fact that deferred annuity rates vary based on several factors, such as age, gender, policy type, payout type, and more. Therefore, it’s crucial to shop around and compare rates from different insurance companies to secure the most favorable rates and terms for your specific needs.
We understand that choosing the right annuity can be a complex decision, influenced by a myriad of factors such as market conditions, individual financial goals, and evolving life circumstances. To better serve you in this critical decision-making process, we regularly conduct in-depth reviews of various annuity products, examining features, costs, and potential benefits. Dive deeper into our extensive reviews here.