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Independent Review of the Nationwide INCOME Promise Select Single Premium Immediate Annuity

What will we cover in this annuity review?

In this annuity review, we will be taking a closer look at the following details that pertain to the Nationwide INCOME Promise Select annuity:


  • Product type
  • Fees
  • Current rates
  • Realistic long-term return expectations
  • How the annuity is best used
  • How the annuity is most poorly used

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.

With life expectancy much longer today than ever before, it is possible for you to spend 20 or more years in retirement. But, while that can allow you to do more of the things you love once you’ve said goodbye to your employer, it also means that you need to have a reliable income source that won’t run out. One of the best ways to attain that is by adding an annuity to your overall financial plan. However, before you make a long-term commitment to the purchase of an annuity, it is essential that you first get a good understanding of how these products work – and how they may, or may not, be in your best interest. All annuities are not identical, and in addition to that, these particular financial vehicles can come with a lot of “small print” that outlines the various tradeoffs that you might have to make in order to garner the benefits of the product. There can also be a long list of charges and fees that come hand in hand with an annuity – so be sure that you know what to look out for. This is where the Annuity Gator can help!

Annuity and Retirement Income Planning Information You Can Trust

If this is the first time that you have visited our website, then please allow us to welcome you here to We are a team of experienced financial and annuity experts who are focused on offering the most comprehensive, and unbiased, reviews of annuities on the Internet. We’ve been at this for many years – much longer than our competitors – and so we have become a well-known source of annuity information online. Given that, if you’ve been looking for more information about annuities – and especially if you have been Googling various annuity words and phrases – it is a good possibility that you have noticed there’s a lot of conflicting information out there about these products. This, however, isn’t really a surprise to us, because there is a great deal of confusion about how annuities work, and which type of annuity may be best for certain circumstances. You may also have attended an annuity seminar or workshop recently where, in return for a free dinner or lunch, you were provided with details about the Nationwide INCOME Promise Select single premium annuity, or some other similar annuity. In fact, your attendance at this seminar might even be the ultimate catalyst that has led you here to our site. Even though there are a plethora of websites that market their annuities to consumers, there are a fair number of these sites that will attempt to “lure” you in by making very enticing claims like:
  • High-income payments
  • Lowest annuity fees
  • Guaranteed lifetime income
  • 7 – 8% Rate of Return
Look familiar? While these claims can be really inviting (particularly in our recent low-interest rate environment), the truth is that it is absolutely essential for you to first make sure that these claims are actually true. (Mostly, they’re not!) This is particularly the case if you are seriously thinking about moving a large sum of your retirement savings into one of them. In any case, whatever the reason is that you landed here on, you are definitely in the right place if you want to find out more about the Nationwide INCOME Promise Select annuity. This annuity review is provided here for you in order to help you ensure that you’re moving in the right direction with this (and/or other) annuity and to guide you in what to look for in terms of the pros and the cons. So, if you are ready to get started, let’s go!

The Nationwide INCOME Promise Select Annuity at a Glance

Product NameINCOME Promise Select
Type of ProductSingle Premium Fixed Immediate Annuity
S&P RatingA+
Phone Number(877) 669-6877

Opening Thoughts on the Nationwide INCOME Promise Select Annuity

Nationwide has a history of strength that has lasted for more than 90 years. The company specializes in annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and companies. With nearly $30 billion in 2016 operating revenue, Nationwide is a Fortune 100 company that has a well-diversified corporate portfolio that allows the firm to navigate all manners of economic ups and downs. Due in large part to its strong and stable financial details, Nationwide has garnered some very high ratings from the insurer rating agencies, including a(n):
  • A+ from A.M. Best
  • A+ from S&P
  • A1 from Moody’s Investor Services
Nationwide has earned other positive accolades, as well, and in 2014, the company received an Insured Retirement Institute (IRI) Award for providing superior thought leadership and research contributions on issues that face both retirees and pre-retirees today. In the current financial and economic environment – which includes employers doing away with defined benefit pension plans – it is now up to most individuals to ensure that they have enough income to last through their time in retirement. One viable solution is to purchase an immediate income annuity like the Nationwide INCOME Promise Select. But before you do so sight unseen, it is important to keep in mind that, just like other financial products, not all immediate annuities are identical. Therefore, it is recommended that you take a close look at this financial vehicle prior to committing a large chunk of your savings to it.

Before we get into the in-depth details, we have some legal disclosures to present…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Nationwide has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. Want to more about how annuities really work? Click here to receive our updated annuity report.

How Nationwide Describes the INCOME Promise Select Annuity

On the Nationwide Financial website, the INCOME Promise Select is described at a fixed single premium immediate annuity, or SPIA for short, that is designed for risk-averse consumers who are seeking a guaranteed income stream for a set amount of time, or even for the remainder of their lifetime. The annuity is also described as providing simplicity and predictability – which is something that many retirees and pre-retirees crave in this current volatile market environment. In addition to offering a steady and ongoing income stream, the INCOME Promise Select has a few other bells and whistles. These include:
  • A Liquidity Feature – The liquidity feature on the INCOME Promise Select annuity allows the annuity owner to withdraw up to 100% of the liquidity value of their guaranteed payments at any time during the liquidity period.
  • Cost of Living Adjustment – The Cost of Living Adjustment, or COLA, provides the opportunity for you to increase your annual income payment amount by 1%, 2%, 3%, 4%, or 5% compounded annually. (In order to get this benefit, though, you need to elect it at the time you initially purchase the INCOME Promise Select annuity).
There is also a death benefit that could be paid out to a named beneficiary (or beneficiaries) upon the death of the annuitant (i.e., the income recipient). Keep in mind, however, that unlike a life insurance death benefit, the death benefit that is paid out from an annuity may be taxable. In order to review the Nationwide INCOME Promise Select fact sheet, you can do so HERE.

How an Insurance or Financial Advisor Might Pitch the INCOME Promise Select Annuity

If your current insurance or financial representative has presented you the INCOME Promise Select annuity from Nationwide, there are likely a few key items that he or she touched on in order to entice you to move forward and purchase it. First, this product can offer you a guarantee when it comes to income in retirement. This includes providing you with an income stream that will last throughout the remainder of your lifetime, as well as the life of another individual such as your spouse, if you so choose. Plus, you have the opportunity to increase the amount of your income over time by up to 5% with the cost of living adjustment feature. But be careful, as there can be some added costs and/or tradeoffs that you’ll need to make in order to attain these great benefits – and in some cases, these can significantly reduce the amount of money you actually receive from the annuity.

What About the Fees and Taxes Associated with this Annuity?

Just as with other annuities, there are certain fees and taxes that could be lurking just around the corner when you access your money from the Nationwide INCOME Promise Select immediate annuity. As an example, if you purchase an immediate annuity with after-tax dollars, then each of your annuity income payments that are made will consist of both a taxable income portion and a return of premium portion (which is non-taxable). However, if you rolled money over into the annuity from a traditional IRA and/or an employer-sponsored retirement plan (such as a 401k plan) where the money that you contributed to the annuity has not yet been taxed, then you will owe taxes on 100% of the income distributions that you receive. This, in turn, can make a big difference in the amount of income you are actually able to “net” and spend. Also, if you opt for the Liquidity Feature, a $50 fee will be deducted from the remaining liquidity value or lump-sum withdrawal for each withdrawal that is taken. (If you’re in New York, this fee is $100). It should be noted as well that during the liquidity period, any withdrawals that are taken from the Nationwide INCOME Promise Select annuity can reduce the income benefit payments and/or the refund death benefit. With all of this in mind, it is important to keep in mind that annuities are basically designed for retirement purposes. In other words, these financial vehicles are not intended to replace emergency funds and/or to fund your shorter-term savings goals. In addition, based on when you take any income or withdrawals, you could incur added penalties from the IRS. For instance, withdrawals that occur before you have turned age 59 ½ will be subject to an additional 10% IRS “early withdrawal” penalty. (This is in addition to any income tax).

The Annuity Gator’s End Take on the Nationwide INCOME Promise Select Annuity

Even though an immediate annuity isn’t the right option for everyone, there are some scenarios where it could fit in quite nicely. For instance, this annuity can provide you with a personal pension-like income. And, if you choose the lifetime income option, this income can continue to flow in for the remainder of your lifetime – no matter how long that might be. Immediate annuities like the INCOME Promise Select from Nationwide Financial can also offer you a place to move funds that you’ve got stored in an IRA, 401k, or other retirement plan so that these savings can be converted over to income. But even so, if you feel that you may need these funds for other needs such as emergencies, then it might not be a good idea to lock away what could amount to a sizeable portion of your overall portfolio. This is particularly the case if you do not plan on using the annuity for income.

In Summary

If you are in the process of researching income annuities for retirement – yet you just aren’t quite sure that an annuity is the right option for you – we would be happy to help you get a better understanding of these financial vehicles, as well as why they may or may not be the best alternative for you and your specific objectives. At Annuity Gator, we can assist you with any of the questions or concerns that you may have. We can also help you with “test driving” this annuity, as well as compare it against other similar annuities in order to determine which one may be best. So, if you have any additional annuity questions, or if you would like to set up a test drive, then please feel free to reach out to us directly via our secure online contact form here. Regarding the INCOME Select Annuity from Nationwide, the good news is that you can be assured that you’ll have an income stream for as long as you need it. And, both you and another individual such as a spouse or partner may be able to share this income security. That being said, there could possibly be an even better option out there for you. If you’d like to compare different income annuities, then please feel free to reach out to us directly through our secure online contact form here.

Do You Have Any Additional Questions About the INCOME Promise Select Annuity from Nationwide? Did You Happen to Notice Any Mistakes in this Annuity Review?

We know that this Nationwide INCOME Promise Select annuity review may have been somewhat lengthy. So, given that, we truly thank you for sticking with us through thus far to the end. However, we would much prefer to give you “too much” information in our annuity reviews than not to give you enough. Therefore, if you felt that this annuity review was beneficial for you, feel free to share it and forward it on to anyone else who you think may also be helped by it. We also understand just how fast financial and insurance market and product information can – and typically does – change. So, if you happened to notice any details in this annuity review that were out of date or need that updating, please let us know that, too, so that we can get it revised as soon as possible. Are there any other annuities that you would like to see reviewed on our website? No problem! If you’ve come across any other annuities that are not included in our current annuity review database, please let us know via our secure online contact form here so that we can do our research and analysis, and add the new review(s) to our website. Best, The Annuity Gator P.S If you would like to read more of our Nationwide annuity reviews here are some links to check out:   Independent Review of the Nationwide INCOME Promise Select Single Premium Immediate Annuity

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