Nationwide Peak 5 - Annuity Association

Nationwide Peak 5

Nationwide Peak 5 is a single-payment fixed index annuity with a rather short year of 5 years. This insurance product is offered by Nationwide, a very reputable provider specializing in a range of insurance products.

You must be wondering whether investing in Nationwide Peak 5 is worth committing to for 5 years because, as you might already know, withdrawing money early on leads to surrender charges.

Hence, without further ado, let’s explore what this annuity has to offer future retirees.

About Nationwide

Nationwide didn’t originally begin as an annuity provider. Founded in 1925 as Farm Bureau Mutual, the company focused on small auto insurance packages. As it grew, the company expanded into property insurance, and a decade later, after acquiring the Life Insurance Company of America, it began offering life policies to farmers and union members.

With its expanding services, Farm Bureau Mutual rebranded to Nationwide, becoming a trusted name in various insurance policies. Today, Nationwide holds about 1.41% of the U.S. market, establishing itself as a reliable annuity provider you can count on.

Nationwide Rating

Rating Company

Rating

Moody’s

A1 (High Quality, Low Risk)

S & P

A.M. Best Rating

A+ (Strong)

DBRS Morningstar

A (High)

Nationwide Peak 5 Highlights

5-Year Fixed Index Annuity
The Nationwide Peak 5 is a 5-year term annuity
Protection from Market Risk
Nationwide Peak 5 offers a lucrative feature that protects your initial investment or credited earnings. What it means is if the underlying index or indices underperform, your savings will not get a hit.
Spouse Protection
Nationwide annuities, including Peak 5, offer a joint option that protects your spouse. If you opt for this rider, no matter who the annuity belongs to and in case of the death of either spouse, a surviving partner can claim a death benefit.
Growth Potential with Guarantees
Nationwide annuity provider is famous for its growth potential with guarantees. Hence, when purchasing Peak 5, you can maximize your savings more effectively than alternative fixed annuities from other providers.

With Nationwide Peak 5, you can choose between indexed and fixed accounts and opt for either an investment in a stock market index or a 1-year guaranteed interest rate.
Crises Waivers
The Nationwide Peak 5 annuity offers a waiver if the annuity holder is diagnosed with a terminal illness or serious injury. However, this waiver becomes available only after the first year of the contract.

Nationwide Summit Overview

🔔 Important Information

Annuity Term

5 years

Type of Annuity

Fixed Index

Interest

Depends on market conditions and the chosen index options

Premium Type

Single Premium

Maximum Issue Age

85 years

Withdrawal Charge Schedule

9%, 8%, 7%, 6%, 5%

Minimum Premium

$25,000

Maximum Premium

$1,000,000

Market Value Adjustment

Yes

Types of Funds

Nonqualified, IRA, Roth IRA, SEP IRA, SIMPLE IRA, charitable remainder trust, and 401(a)

Nationwide Peak 5 Historical Rate of Return

Fees and Charges

If you invest in Nationwide Peak 5, you will be pleasantly surprised that there are no annual or administration fees. The only time you might need to pay is for a penalty in the case of early withdrawal.

Index Options

Nationwide Peak 5 offers four different indexes, and you can diversify your investing portfolio with the S&P 500®, MSCI EAFE Index, Morgan Stanley 3D Index, J.P. Morgan Mozaic IISM Index, or a combination of both. Here are a few details about each of them:

The S&P 500® index is a well-known measure of the American economy's health. It tracks the performance of 500 publicly traded U.S. companies.

The J.P. Morgan Mozaic IISM index focuses on investing assets that have been doing well recently, assuming they will continue to perform well. Every month, it looks at 15 types of global investments and picks the top 9 that show the best returns over the past 6 months.

The Morgan Stanley 3D index blends different types of assets with market trends to find growth opportunities while trying to keep a balanced performance.

The MSCI EAFE index is another option offered by Nationwide. It invests in a range of international stocks from developed countries outside North America, such as Europe, Australia, and Asia.

Crediting Methods

The Nationwide Peak 5 has a number of crediting methods, which will mainly depend on your chosen index option and other factors included in your contract.

Nationwide Peak 5 Surrender Schedule

Nationwide imposes a 5-year surrender charge period for the Peak 5 annuity. This means that each year, the penalty percentage will decrease until it reaches 0%, at which point you can withdraw your savings.

*The interest rate may vary depending on the state.

Nationwide Peak 5 Key Features

Nationwide Peak 5 advantages go beyond waivers and protection from market risk. Here are the key features:

Market Value Adjustments (MVA)

Market Value Adjustments may apply if you need to withdraw money from your contract during the surrender period, which is 5 years for Nationwide Peak 5.
The way MVA works often depends on the interest rate. If the interest rate decreases, MVA will increase the amount of money you can get from your withdrawals. The opposite happens if the interest rate increases.

Tax-Deferred Growth

With Nationwide Peak 5, your annuity may grow tax-deferred. It means that your contract value earns interest, your interest earns interest, or you earn interest on the money you would’ve paid in taxes.
With this feature, you can accumulate more assets and let your money grow in the annuity.

Nationwide Peak 5 Pros and Cons

Company Information