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 Indexed 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.
In this article, we will discuss the Nationwide Peak Fixed Indexed Annuity in-depth. The Nationwide Peak Fixed Indexed Annuity was launched in June 2019 and offers tenures of 5, 7, and 10 years. Nationwide Peak is a deferred, fixed-indexed annuity that may be a suitable option if you are seeking growth, principal safety, good indexing options, and a complementary joint death benefit feature. After extensive research and due diligence, I present an in-depth and unbiased analysis of this plan.
The review of the Nationwide Peak 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 Nationwide Peak is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) the opportunity to earn a portion of a market index-linked return without incurring the risk of market downside. This is a suitable plan for individuals approaching retirement who aim to grow and protect their retirement savings. This plan is also suitable for individuals seeking a complementary joint death benefit feature in conjunction with protecting and growing their retirement savings.
Let’s have a look at the high-level fine print of the Nationwide Peak Fixed Indexed Annuity, and then we will discuss each point in detail.
| Product Name | Nationwide Peak |
|---|---|
Issuing Company | |
AM Best Rating | A+ (2nd of 13 ratings) |
Withdrawal Charge Period(s) | 5, 7, and 10 years |
Maximum Issue Age | 90 for single life, 85 for joint |
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 |
RMD Friendly | Yes |
Death Benefit | Upon the annuitant’s death, the beneficiary can choose either (i) Accumulated Value (Lumpsum) or (ii) Minimum Guaranteed Contract Value. Free joint option for death available |
Riders |
|
Minimum Guaranteed Contract Value | 2.85% on 87.5% of your purchase payment (less withdrawals) |
Surrender Value | Greater of Accumulated Value (less any withdrawal charges/MVA) and the Minimum Guaranteed Contract Value |
The Nationwide Peak Fixed Indexed Annuity is almost identical for all three policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and better clarity, we will discuss the Nationwide Peak 5 (unless mentioned otherwise) Fixed Indexed Annuity for the rest of the article.
Product Policy
How does the Nationwide Peak Fixed Indexed Annuity work?
An annuitant (maximum age at the time of policy issue: 90) can purchase the Nationwide Peak 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) without having to incur the risk of the market downside, 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 Nationwide Peak Fixed Indexed Annuity allows the annuitant to choose from one or more of the four indexes to determine their earnings crediting formula. Each index offers a plain-vanilla 1-year point-to-point with a cap rate indexing strategy. The plan also offers a fixed-rate guaranteed interest strategy to choose from (making a total of 5 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 consistently proven its worth over time. It is essential to note that the Nationwide Peak plan features a cap rate for the S&P 500 index, which means that you will receive only a portion of the S&P 500 return credited to your annuity. These rates are subject to frequent changes; I will discuss them in detail shortly.
2. J.P. Morgan Mozaic II Index
The J.P. Morgan Mozaic II Index is built on investment philosophies designed to pursue positive returns across both favorable and unfavorable market environments. The index aims to deliver more consistent performance by actively managing volatility through dynamic asset allocation. It is broadly diversified, providing exposure across multiple asset classes including equities, fixed income, and commodities. However, as a volatility-controlled index, return outcomes are inherently smoothed, which limits both downside risk and upside participation.
3. MSCI EAFE Index
The MSCI EAFE is a widely recognized international equities index comprising large companies across developed countries in Europe, Australasia, and the Far East, excluding the U.S. and Canada. MSCI EAFE encompasses equities across a diverse range of industries and regions, offering broad opportunities for growth. Again, it is essential to note that the Nationwide Peak plan has caps in place for the MSCI EAFE index, meaning that you will receive only a portion of the MSCI EAFE return credited to your annuity.
4. Morgan Stanley 3D Index
The Morgan Stanley 3D Index is a momentum-driven index that rebalances monthly across three widely recognized asset classes: domestic bonds, global developed equities, and domestic equities. The strategy seeks to capture sustained performance trends by allocating toward asset classes that have demonstrated recent strength. Its systematic rebalancing framework allows the index to adapt across different market environments and moderate the performance swings typically associated with equity-only benchmarks. However, as a volatility-controlled index, the return profile is smoothed, which limits not only downside risk but also caps upside participation during strong market rallies.
Note: In addition to allocating the funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest. The Fixed Rate at the time of writing this article was 3.20%. This rate may change periodically and can vary from state to state. Consult your financial advisor for the latest rates.
Rates and Costs
The earnings crediting formula
The earnings crediting formula is one of the most important parts of this annuity discussion. It is essential to note that we don’t simply receive the index return credited to our annuity. There are a few rate-limiting mechanisms (in the form of cap rates) that the company has in place that affect our earnings. These rates are subject to change over time, and the updated rates can be checked on the company’s website at any time.
Let's take a closer look at the Nationwide Peak 5 rate sheet (as of December 2025) to understand how earnings are calculated. Please note that these rates are current as of the time this article was edited and apply only to the Nationwide Peak 5 FIA. For the most accurate and up-to-date rates, you may contact your trusted financial advisor or visit the company's website.
The first thing to notice is that the plan offers an annuitant the ability to choose from four indexes, which we have discussed briefly in the earlier part of this article. Unlike many other plans that offer myriad indexing options to choose from (which sometimes becomes confusing), the Nationwide Peak annuity offers a plain-vanilla 1-year point-to-point with cap rates as crediting options for all four indexes that it offers.
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.
In addition to the indexing options, the plan also offers a fixed account rate option. If you opt for a fixed account rate, you will earn the fixed rate for a specified period, as determined by the company, before your policy begins. These rates usually tend to be equal to or even lower than those of 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 3.20%. It is essential to always check the latest rates before selecting your preferred index.
Out of all these indices, I prefer the MSCI EAFE index and the S&P 500 index the most because of their broad nature, decent back-tested returns, good real performance, and relatively higher cap rates offered by the company. The two other indexes provide even higher cap rates than those I suggested; however, their actual performance is lower than that of the S&P 500 and the MSCI EAFE Index. Therefore, despite offering a higher cap rate, they are not as effective.
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. For all excess withdrawals, you will only receive a prorated amount of interim strategy earnings-to-date. Below is the Surrender Charge schedule for the Nationwide Peak 5 Fixed Indexed Annuity.
| Completed Contract Years | 1 | 2 | 3 | 4 | 5 | 6+ |
|---|---|---|---|---|---|---|
Surrender Charge % | 9% | 8% | 7% | 6% | 5% | 0% |
The surrender charge schedule is different for the different tenures of annuities and the state in which they are issued. For a quick comparison of surrender charges across different Nationwide products, you may visit their fixed-indexed annuities product page. The surrender charge of Nationwide Peak fixed indexed annuity is pretty much 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 offer flexibility in balancing lifetime income needs with legacy goals, enabling you to tailor how and when funds are accessed during retirement.
Death Benefit
Upon the annuitant’s death, the beneficiary can choose either (i) Accumulated Value (Lumpsum) or (ii) Minimum Guaranteed Contract Value.
Riders
Nationwide offers a free joint death benefit with this annuity. The joint death benefit option allows the annuity contract owner to name a spouse as a co-annuitant. It allows the death benefit to be paid to either surviving spouse, no matter who passes away first or who owns the contract.
The surviving spouse also has the option to continue the annuity contract at the death benefit value. Any remaining surrender charge/CDSC or MVA would no longer apply to the contract.
Like most Fixed Indexed Annuities, the Nationwide Peak annuity also comes with complementary Confinement and Terminal Illness Waivers.
Confinement 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 a continuous 90-day period. 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. 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.
What Makes this Product Stand Out?
The Nationwide Peak Fixed Indexed Annuity offers some of the features that not many fixed-indexed annuities offer. The ones that I like the most are:
- Straightforward Indexing Options with Decent Caps: While capped equity strategies can limit return potential and dilute the appeal of indexing, the Nationwide Peak Fixed Indexed Annuity offers relatively higher caps on even widely followed benchmarks such as the S&P 500 Index and MSCI EAFE Index.
- Free Joint Option for Death Benefit: Allows for a spouse to be named as the co-annuitant and the death benefit to be payable upon the death of either spouse; the surviving spouse has the option to take the lump-sum death benefit or continue the contract at the death benefit value.
- High Issue Age: The Nationwide Peak offers annuity up to an age (during issue) of 90. Most other plans have a maximum age at issue of 75-80 years.
- Free Confinement and Terminal Illness Waiver
- No annual contract, mortality & expense, or administrative fees
What I Don’t Like
I don’t like the following limitations of this annuity:
- High Initial Premium Requirement: $25,000 vs. $10,000 offered by most competitors
Contract/Administrative Charge
The Nationwide Peak levies no annual contract or administrative fees.
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.
Nationwide Mutual Insurance Company
Nationwide Life Insurance Company is a leading U.S. life insurer and a wholly owned subsidiary of Nationwide Mutual Insurance Company. The company offers a broad range of retirement and protection solutions, including fixed and indexed annuities, life insurance, and long-term care products. It is one of the oldest life insurance companies, having been in the business for over nine decades. It is a Fortune 100 and 500 company, ranked #72 as of 2025.
It is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
AM Best | A+ (2nd of 13 ratings) |
Moody’s | A1 (5th of 21 ratings) |
S&P | A+ (5th of 21 ratings) |
Nationwide has managed to maintain strong ratings for many years. Nationwide is considered to be strong and stable financially. In 2024, the company paid out over $20.7 billion in benefits and claims. As of year-end 2024, some of the other financial highlights for Nationwide Life Insurance Company include its:
- $68.5 billion in gross sales
- $28.3 billion of total adjusted capital
- $150 billion of a total investment portfolio
- $3.2 billion in net operating income
- $322.3 billion in total assets
Thus, going by the operating history and financial numbers, we can safely gauge that you can trust your savings with Nationwide.
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 stream of income that can grow safely and steadily, and provide a fixed, guaranteed income during retirement years. This not only helps you mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.
The Nationwide Peak delivers on multiple fronts, offering principal protection with growth potential and the ability to participate in market index performance without direct market risk. It is a no-nonsense annuity that provides access to some of the most popular indexing options, along with a free joint death benefit feature that allows the contract owner to name a spouse as a co-annuitant. While the product offers a limited number of riders, this can be a positive for annuitants who prefer simplicity and wish to avoid the complexity often associated with additional rider terms and conditions. For investors seeking a straightforward fixed indexed annuity focused on growth with the added benefit of a free joint death benefit, the Nationwide Peak Fixed Indexed Annuity is a reasonable product to consider.
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. Delve deeper into our extensive reviews here.