What counts as a good annuity rate in 2026?

A high advertised annuity rate can look attractive, but it does not automatically make an offer a good deal. Buyers need to examine the product, term, insurer and contract provisions behind the percentage.

Annuities appeal to retirees and people approaching retirement because they can provide guaranteed returns and a predictable income stream. The current interest-rate environment has added to that appeal, with longer-term yields remaining elevated and some fixed-income products offering more than they did during the ultra-low-rate period of several years ago.

There is no universal definition of a good annuity rate. Different types of annuities express rates differently, but current market offers provide a benchmark for fixed annuities and multi-year guaranteed annuities, or MYGAs.

As of early September, the highest MYGA rates tracked by Annuity.com using CANNEX data ranged from 5.25% to 6.30% for terms of two to 10 years. Nine-year products were the exception, topping out at 5.40%. The highest current rate reached 6.30% for a five-year term, 6.00% for three years and 6.25% for 10 years.

In general, a fixed annuity rate in the mid-5% range or higher can be competitive, while some leading offers reach around 6% or more. The figures remain benchmarks rather than firm rules because rates can change frequently and available offers depend on the details of each contract.