Introduction
Fixed Indexed Annuities are contracts between the annuitant and an insurance company in which the insurance company promises to credit interest based on the performance of a certain stock market index, such as the S&P 500. Fixed Index Annuities have an inbuilt capital protection feature, so your principal will remain safe even if the index goes down.
Annuities are complex products, and many advisors try to mis-sell them without properly understanding the buyer’s needs. Thus, you must educate yourself on these products and not solely depend upon the annuity agent’s high-pressure sales pitch.
This article discusses an in-depth review of the Delaware Retirement Stages Select Fixed Indexed Annuity. Delaware Retirement Stages Select is a deferred, fixed-indexed annuity that may be a suitable option if you are seeking a no-frills fixed-indexed annuity with a core focus on growth and the preservation of principal. This annuity offers some good indexing options, which have the ability to provide reasonably expected returns in the market. After extensive research and due diligence, I present an in-depth and unbiased analysis of this plan.
The review of the Delaware Life Retirement Stages Select Fixed Indexed Annuity will be broken into multiple subcategories:
- Product Description
- Product Policy
- Rates and Costs
- Accessing your Money
- Riders
- What Makes This Product Stand Out?
- What I Don’t Like
- Company Details
- Conclusion
Product Description
The Delaware Life Retirement Stages Select is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) an opportunity to earn a part of market index-linked return without having to incur the risk of market downside. This is a suitable plan for people who are looking for a plain vanilla fixed indexed annuity (with no optional paid riders such as enhanced lifetime income, enhanced death benefit, etc.) and aim to grow and protect their retirement savings.
Let’s have a look at the high-level fine print of the Delaware Life Retirement Stages Select Fixed Indexed Annuity, and then we will discuss each point in detail.
| Product Name | Retirement Stages Select |
|---|---|
Issuing Company | |
AM Best Rating | A- (4th of 13 ratings) |
Withdrawal Charge Period(s) | 5 and 7 years |
Maximum Issue Age | 85 Years |
Minimum Initial Purchase Amount | $25,000 |
Surrender Charge Schedule | Varies for different tenure policies |
Crediting Period and Strategies |
|
Plan Types |
|
Indexes |
|
Free Withdrawals | 10% of the annuity’s Accumulated Value; per year. |
Death Benefit | Upon the annuitant’s death, the beneficiary will get greater of (i) Account Value or (ii) Surrender Value |
Riders |
|
Guaranteed Minimum Account Value (GMAV) | Guarantees that your annuity’s account value will be at least 115%/121% of the initial premium, less any withdrawals, at the 5th/7th anniversary |
Surrender Value | Greater of Account Value (less any withdrawal charges/MVA) and the Minimum Guaranteed Value |
RMD Friendly | Yes |
The Retirement Stages Select Fixed Indexed Annuity is almost identical for both policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and clarity, we will focus on the Retirement Stages Select Fixed Indexed Annuity 5 (unless otherwise mentioned) for the remainder of the article.
Product Policy
How does the Delaware Life Retirement Stages Fixed Indexed Annuity policy work?
An annuitant (maximum age at the time of policy issue: 85) can purchase the Delaware Life Retirement Stages Fixed Indexed Annuity with a minimum initial purchase amount of $25,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credit, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable.
The Delaware Life Retirement Stages Fixed Indexed Annuity offers the annuitant the choice of one or more of the six indexes (S&P 500 Index, S&P 500 Dynamic Intraday TCA Index, Goldman Sachs Canopy Index, First Trust Capital Strength Barclays 10% Index, Franklin SG Select Index, and Nasdaq 100 Intraday Elite 15% Index) to determine their earnings crediting formula. The S&P 500 index has 3 crediting strategies, and the other four indexes have one strategy each. The plan also offers a fixed-rate guaranteed interest strategy to choose from, making a total of 8 strategy options. We will discuss each available index briefly:
The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time. It is very important to note that, similar to most other annuities, the Delaware Life Retirement Stages Select Fixed Indexed Annuity offers the S&P 500 index with cap rates, participation rates, and performance triggers in place, meaning that your interest-earning capacity is capped. These rates change frequently; I will discuss the rates in detail shortly.
2. S&P 500 Dynamic Intraday TCA Index
The S&P 500 Dynamic Intraday TCA Index is a financial index designed to provide exposure to the S&P 500 through the use of E-mini S&P 500 futures. This index employs a dynamic approach, utilizing 13 observation windows throughout the trading day to adapt to changing market conditions. By doing so, it aims to offer a more stable volatility experience for investors. The index combines a trend-following mechanism with the capability to rebalance multiple times during the day, allowing it to respond swiftly to market movements and optimize performance.
3. First Trust Capital Strength Barclays 5& Index
The First Trust Capital Strength® Barclays 5% Index aims to provide stable growth with a diversified portfolio that provides exposure to U.S. equities and Treasurys and targets a 5% volatility. The index creates a diversified portfolio by combining U.S. stocks selected based on capital strength methodology with a portfolio of four Barclays U.S. Treasury futures indexes. Similar to the previous index, the Index tries to limit long-term realized volatility to 5% or less, dynamically adjusting the allocation between the underlying traded instruments and cash (which can reduce the overall rate of return compared with indexes without a volatility control mechanism).
4. First Trust Capital Strength Barclays 10% Index
The First Trust Capital Strength® Barclays 10% Index aims to provide stable growth with a diversified portfolio that provides exposure to U.S. equities and Treasurys and targets a 10% volatility. The index creates a diversified portfolio by combining U.S. stocks selected based on capital strength methodology with a portfolio of four Barclays U.S. Treasury futures indexes. The Index tries to limit long-term realized volatility to 10% or less, dynamically adjusting the allocation between the underlying traded instruments and cash, which can reduce the overall rate of return compared to indexes without a volatility control mechanism.
5. Franklin SG Select Index
The Franklin SG Select Index is designed to deliver stable returns by dynamically adjusting its investment strategy across changing market conditions. It offers exposure to top-performing large and mid-cap U.S. stocks selected from Franklin Templeton's mutual fund universe. The index employs a multi-factor investing approach, focusing on value, quality, and momentum to identify stocks with strong growth potential. To manage risk, the index incorporates a volatility control mechanism targeting 5% annual volatility and adjusts its exposure by shorting an ETF tracking the S&P 500 Index. Additionally, it diversifies with 10-year U.S. Treasuries, adjusting bond allocations based on market conditions to further stabilize returns. This approach aims to protect against market downturns but also limits the index upside.
6. Nasdaq 100 Intraday Elite 15% Index
The Nasdaq-100 Intraday Elite 15% Index is a rules-based strategy that starts with the Nasdaq-100 universe and applies an intraday rebalancing process designed to capture short-term market momentum while managing daily volatility. The index targets a 15% volatility level, meaning it adjusts its exposure throughout the day—scaling up during calmer periods and reducing exposure when markets are more turbulent. Because of this built-in volatility control, the index tends to deliver smoother but more constrained returns compared to the traditional Nasdaq-100.
It is essential to note that the Retirement Stages Select Fixed Indexed Annuity features cap rates, participation rates, and performance triggers for these indexes, meaning that you will receive only a portion of the index return credited to your annuity. These rates change frequently; I will discuss more on these rates more shortly.
Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. These Fixed Rates change from time to time. The Fixed Value Rate for the 5-year withdrawal charge period at the time of writing this article was 4.50% (for the $100,000 and over band).
Rates and Costs
The earnings crediting formula
The earnings crediting formula is the most important part of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. There are a few rates, caps, and triggers that the company has in place that affect our earnings. These rates tend to change over time, and the updated rates can always be checked on the company’s website.
Let’s have a look at the Delaware Life Retirement Stages Select Fixed Index Annuity rate sheet (as of November 2025) to understand how the earnings are determined.
From the above rate chart, you will notice that there are 8 interest crediting options (1 fixed and 8 indexed). Let’s have a look at different terms that are used by the company in the Retirement Stages Select FIA chart rate:
- Cap Rates: This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.
- Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in a return of an index. For example, suppose the participation rate is 150%, and the index returned 4% over the agreed time. In that case, the annuitant will be eligible for 150% of the return, i.e., 6%.
- Performance-Triggered Index Option with Declared Rate: A flat or positive index return triggers the declared interest rate to be credited to the contract value. If the index return is negative, no interest is credited, but there will be no loss, and the contract value will remain the same. The declared interest rate is set at contract issue and applies for the entire withdrawal charge period. In this case, the performance-triggered rate for the S&P 500 Index is 7.35%. It means that if the S&P Index doesn’t go negative for a given 1-year period (even if the growth is 0% and not negative), the interest credited to the annuity will be 7.35% irrespective of the S&P 500's actual return.
- Point-to-Point with Participation Rate, Boost, and Knockout: This index strategy adds a Boost Rate to the return of an index at the end of the term if a Knockout has not occurred. If a Knockout has not occurred, the company will compare the index value at the end of the term to its value at the beginning of the term and add a Boost Rate to the percentage change in the index. A Participation Rate is then applied to the boosted index return to determine the amount of interest credited. A Knockout is an event that cancels an index interest credit and occurs if the index value drops below the Knockout Barrier at any point during the term. If a Knockout occurs, you will not receive an interest credit and may not transfer your index value to another index strategy until the end of the term. For example, If the index value at the beginning of the term is 2000 and the Knockout Rate is 98%, then the Knockout Barrier value would be 1960.
- Fixed Account Rate: If you opt for a fixed account rate, you simply earn the fixed rate for a particular period specified by the company before your policy begins. These rates are usually low/at par as compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. The 1-year fixed rate on this policy at the time of writing this article was 4.50%.
- Bailout Provision: For the S&P 500 1-year point-to-point strategy with cap, if the company lowers any rate below the Bailout Cap rate, you’ll have full access to withdraw your annuity’s accumulated value - free of any charges or Market Value Adjustments.
Among these indices, I prefer the S&P 500 Index with a cap option or a performance trigger option. I avoid any S&P 500 strategy with a participation rate because the company offers a very low participation rate for the S&P 500 index. The Franklin SG Select Index is also a good indexing option if you are willing to take on some risk—if the knockout barrier isn’t hit, you get a very good participation rate plus an additional boost.
You can also consider the fixed account option, as the company is currently offering one of the highest fixed rates among other annuity providers.
Precision Portfolios
The annuitant can also choose from two model Precision Portfolios, which are designed to offer diversification benefits without the need to select indexing strategies manually. Each portfolio is constructed with set percentage allocations to individual index strategies from providers such as S&P, Nasdaq, Goldman Sachs, First Trust, and Franklin Templeton, along with an allocation to the fixed account.
If I were to choose, I would focus solely on the S&P and Nasdaq-100 strategies, and I would opt to pass on the Precision Portfolios. However, if you plan to go for the Precision Portfolio, I would prefer Option #1 (Precision Core) because it offers broad-based indexes with a solid performance history, transparency, and strong expected returns.
Accessing your Money
Each year, you are entitled to a 10% free withdrawal of your contract value without incurring any charges, fees, or penalties.
Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Retirement Stages Select Fixed Indexed Annuity.
| Completed Contract Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
|---|---|---|---|---|---|---|---|---|
5-yr | 8% | 7% | 6% | 5% | 4% | 0% | ||
7-yr | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% |
Market Value Adjustments - In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period. The surrender charge schedule is different for the different tenures of annuities and also changes for some states.
The surrender charge of Delaware Life Retirement Stages Select Fixed Indexed Annuity is in line with all the other annuity issuers.
Once the surrender charge period ends, you can typically access your full contract value without fees. However, any withdrawal reduces both your contract value and, if applicable, the income base tied to optional riders, which may impact future guaranteed income.
An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.
Life Only – Provides income for as long as you live.
Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.
These options allow flexibility in balancing lifetime income needs with legacy goals, offering a way to customize how and when funds are accessed in retirement.
Death Benefit
Upon the annuitant’s death, the beneficiary will get the greater of (i) the Account Value or (ii) the Surrender Value
The Index Lock Feature
An important aspect of the Delaware Life Retirement Stages Select Fixed Indexed Annuity to highlight is its Index Lock feature. This feature is designed to take advantage of market growth, allowing annuity holders to lock in their gains on an annual basis when the markets perform well.
The example below shows how a Retirement Stages Select fixed index annuity can lock in account value gains during up markets and protect your account value during down markets.
Upside opportunity: When markets perform well, you will have the opportunity each year to lock in the gains in your annuity.
Downside protection: When markets perform poorly, you won’t lose any of your payments or credited interest, regardless of the index strategies and crediting options you choose.
Stability and security: You benefit from the security of a more stable and predictable investment experience.
The Index Lock feature gives annuity owners the chance to solidify their earnings in positive market conditions. By doing so, it helps them retain the benefits of good market performance without being overly exposed to market volatility.
Riders
The Retirement Stages Select is a plain-vanilla annuity that does not offer any optional paid riders. In my opinion, this actually appeals to many people who don’t understand or do not want to dive deep into the complex methodologies the riders often come up with. However, as with most annuities, the Retirement Stages Select has free in-built nursing home and terminal illness waivers.
Nursing Home Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified nursing home for at least 90 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness with a prognosis of 12 months or less. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Contract/Administrative Charge
The Delaware Life Retirement Stages Select Fixed Indexed Annuity levies no annual contract or administrative fees.
What Makes this Product Stand Out?
The Retirement Stages Select Fixed Indexed Annuity offers a few features that make a favorable case for this annuity. The ones that I like the most are:
- The plan offers the S&P Index with multiple crediting methodologies.
- The Index Lock feature allows for yearly capture of gains during good market conditions, allowing for enhanced upside opportunity.
- Decent Caps, Performance-Trigger, and Fixed Rate: Caps on the equity indexing strategies are a bummer! However, the good thing with the Retirement Stages Select Fixed Indexed Annuity is that it provides decent caps, even for a very popular index like the S&P 500. Similarly, it also offers a performance-trigger rate than many of its competitors. It also offers competitive fixed rates.
- No annual contract, mortality & expense, or administrative fees
- Free Confinement and Terminal Illness Waiver Benefit: This no-fee rider is automatically included for owners under age 65 and includes both a Qualified Nursing Care and Terminal Illness Benefit:
- High Guaranteed Minimum Surrender Value: The Guaranteed Minimum Surrender Value is equal to 115% of premium prior withdrawals. This is one of the highest Guaranteed Minimum Surrender Values I have seen, while for other popular annuities, this rate is usually only 87.5% of the premium accumulated.
- Multiple Payout Options: Lump sum or Annuitization option with Life Only, Life with Period Certain, Joint and Survivor Life, etc.
What I Don’t Like
This product is decent for people looking for growth and safety; still, there are some features that could add more value for the annuitant. Some of the features that I don’t like about the policy are:
- No optional riders to choose from
- While the annuity provides good strategies for the S&P 500 Index, I’m not as keen on the other four indexes available for the interest crediting strategy. These other indexes include a volatility control mechanism that restricts the index's overall return potential.
Company Details
You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.
Delaware Life Insurance Company
Delaware Life Insurance Company was founded in 2013 and is a subsidiary of Group 1001 Insurance Holdings, LLC. Group 1001 is a dynamic network of several insurance businesses. It is a relatively newer player, but is rapidly growing and making its name in the market. In 2025, Delaware Life was top-rated in Barron’s 100 Annuities list.
It is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
AM Best | A- |
S&P | A- |
Fitch Ratings | A- |
Although the ratings are not the best when we compare them with bigger players, they are good enough for you to consider buying an annuity.
Delaware Life Insurance Company has managed to maintain decent ratings for many years. It is considered to be strong and stable financially. As of June 2025, the company had assets of $56.2 billion, with more than 324,000 active annuity and life insurance policies.
Going by the operating history, financial numbers, and ratings, we can safely gauge that you can trust your savings with Delaware Life Insurance Company.
Conclusion
With the advancement in healthcare and technology, the average American today is living longer than ever. So, it’s very important to have a retirement corpus that can grow safely and steadily and have the ability to provide a fixed stream of income during the retirement years. This not only helps you to mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.
The Delaware Life Retirement Stages Select FIA is a decent annuity that helps you grow your retirement account with much less risk. Through its higher caps and performance-trigger rates, It offers faster growth with principal protection. The product’s plain vanilla nature (with no optional paid riders) might also appeal to people who don’t like to deep-dive into the complex methodologies often associated with the riders. If you are considering buying a Fixed Indexed Annuity that is purely growth-and-safety oriented, the Retirement Stages Select Fixed Indexed Annuity might be a decent product to look at.
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.