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Nationwide Peak Annuity Review

Navigating the crowded annuity landscape can be tricky. There are tons of annuity providers out there, each offering multiple different annuity products. This makes finding that perfect annuity for you a daunting task.

Luckily, you have the Annuity Association to help you. In today’s annuity review, we look into the Nationwide Peak annuity from the Nationwide insurance company. Is it the right choice for you? Let’s find out.

About Nationwide Insurance Company

Nationwide Insurance, headquartered in Columbus, Ohio, is one of the largest insurance and financial services companies in the United States.

Established in 1926, Nationwide offers a comprehensive range of insurance and financial products, including auto, home, life, and commercial insurance, as well as banking, investment, and retirement planning services, including fixed, variable, and immediate annuities.

Nationwide Financial Rating

Rating Company

Rating

Moody’s

S & P

A+

A.M. Best Rating

A+

Nationwide Peak Highlights

Fixed Index Annuity
The Nationwide Peak annuity is a fixed indexed annuity designed to provide a balance of growth potential and protection for individuals planning for retirement. Returns are linked to the performance of selected market indices, offering growth potential without directly investing in the stock market.
Guaranteed Lifetime Income
Nationwide Peak offers various payout options, including lifetime income, ensuring a steady income stream throughout retirement. It also includes optional riders, such as the Income Advantage ride that, for an extra fee, can enhance the guaranteed income benefits.
Free Withdrawals
Nationwide Peak annuitants can withdraw up to 10% of the contract value each contract year without facing surrender charges. This percentage is calculated based on the accumulation value of the annuity at the beginning of the contract year.
Tax-Deferred Growth
Earnings from the Nationwide Peak annuity grow tax-deferred until withdrawals are made, which can help maximize accumulation over time.
Death Benefit
In the event of the policyholder's death, the annuity provides a death benefit to the designated beneficiaries, ensuring financial support for loved ones.

Nationwide Peak Annuity Overview

🔔 Important Information

Annuity Term

1-year

Type of Annuity

Fixed Index

Premium Type

Single Purchase

Maximum Issue Age

90 for single life, 85 for joint

Withdrawal Charge Schedule

9%, 8%, 7%, 6%, 5%, 4%, 3%, 0%

Minimum Premium

$25,000

Maximum Premium

$1,000,000

Market Value Adjustment

Yes

Nationwide Peak Historical Rate of Return

The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.

What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.

Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.

No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.

Fees and Charges

The good news is that the Nationwide Peak annuity does not charge annual or contract administration fees. The only additional costs you might incur are when you opt for an optional rider or need to withdraw funds from your annuity during the 7-year annuity surrender period.

Index Options

Nationwide Peak offers four different index options:

S&P 500 Index
Morgan Stanley 3D Index
J.P. Morgan Mozaic II Index
MSCI EAFE Index

Crediting Methods

Nationwide Peak annuitants have two primary crediting methods:

Index Account: Earnings can be credited annually based on the performance of the underlying index or indexes, excluding capital gains and dividends, up to a specified cap. Tiered caps are available based on the premium amount. Any credited earnings are locked in at the end of the index term.
Fixed Account: The annual interest rate is credited daily, with tiered rates available based on the premium amount.

Important Note: Purchase payments can be allocated across all available fixed and indexed options in any combination, using whole number percentages only.

Annuity Surrender Charge Schedule

If you decide to withdraw your money early, you will face surrender charges. These are common in the industry, with most annuity providers charging fees for early money withdrawals (typically a percentage of the withdrawal amount decreasing annually).

In the case of Nationwide Peak, the surrender charge schedule is seven years:

*The interest rate may vary depending on the state.

Nationwide Peak Key Features

Market Value Adjustments

A market value adjustment (MVA) may apply based on changes in interest rates since the purchase of the annuity, potentially increasing or decreasing the value. In the case of Nationwide Peak, the following MVA rules apply:
If interest rates have increased, the MVA will be negative, reducing the amount of your withdrawal.
If interest rates have decreased, the MVA will be positive, increasing the amount of your withdrawal.

Minimum Guaranteed Contract Value

A percentage of your purchase payment (less withdrawals) accumulated at a specified rate.
The annuity’s Minimum Guaranteed Contract Value is used when determining full surrender amounts.

Required Minimum Distribution

Withdrawals are available without Contingent Deferred Sales Charges (CDSC) and Market Value Adjustments (MVA) under certain conditions.
If the Required Minimum Distributions (RMD) for the year exceeds the allowable free withdrawal amount, the free withdrawal limit will be increased to match the RMD amount for that year.

Nationwide Peak Pros & Cons

Combines growth potential with the safety of principal protection.
Offers flexibility in crediting strategies and income options.
Provides tax-deferred growth, allowing for greater accumulation.
Includes death benefit options to support beneficiaries.
Provides multiple indexing options.

Company Information