What will we be covering in this annuity review for the Nationwide Peak 10 with distribution partner AmeriLife?
In this review, we will be covering the following features of the Nationwide Peak 10 fixed index annuity:
- Type of Annuity
- Fees to look out for
- Realistic expectations
- How the annuity is used best
- How the annuity shouldn’t be used
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If you’ve been considering the purchase of a fixed indexed annuity because of the index-linked (and tax-deferred) growth that you can obtain without any worry about market-related losses, then the Nationwide Peak 10 fixed index annuity may be a good option for you.
In many ways, fixed indexed annuities can provide you with the “best of both worlds.” What exactly does that mean?
First, it offers the opportunity for a higher return than that of a regular fixed annuity. With today’s historically low interest rates, it can be hard to generate a return that meets, much less beats, inflation. So, the fact that these annuities have their return linked to underlying market indexes is key.
On the other side of the coin, if the tracked index(es) does not perform well in a given contract year, you won’t incur a loss. Rather, the account will be credited with a minimum guaranteed return – which currently (early 2021) is in the range of 0% to 2% on many of these types of annuities.
In addition, as with other annuities, a fixed indexed annuity like the Nationwide Peak 10 offers an income stream that lasts for a specific period of time, or even for the remainder of your lifetime if you choose that particular income alternative.
With that in mind, it is easy to see why fixed indexed annuities, or FIAs, have become so popular with investors who are tired of stock market losses, and who also want to know that their money will be there when they need it – and for as long as they need it.
But, before you run out and purchase the Peak 10 indexed annuity from Nationwide – or for that matter, any annuity – it is important that you have a good understanding of how the product works so that you can anticipate the fees you could incur, as well as knowing the ins and outs of the crediting of returns in the account.
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Our primary mission is – and always has been – to provide information about annuities to consumers so that they know exactly what they may (or may not!) be getting into before it is too late. Annuities can be highly complex – especially the ones that have a lot of moving parts like FIAs. So, it helps to have someone who is adept in how annuities work who can also pare down the massive amount of “fine print” into something that is more easily understood.
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- Lowest annuity fees
- High-income payouts
- Top-rated annuity carriers
- Income stream for life
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The Nationwide Peak 10 Fixed Indexed Annuity at a Glance
|Product Name||Peak 10|
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||A+ (Superior)|
|Phone Number||(877) 669-6877|
Opening Thoughts on the Nationwide Peak 10 Fixed Index Annuity
Nationwide has a history of strength that has lasted for more than 90 years, and today it is one of the largest insurance and financial services companies around the globe. The company specializes in providing annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and businesses.
There are numerous Nationwide affiliate companies, too, that are located throughout the United States, including those that specialize in property and casualty insurance, life insurance, financial services, and strategic investments.
Nationwide Life and Annuity Insurance Company has high ratings from the insurer ratings agencies, including a(n):
- A+ from A.M. Best Company
- A+ from S&P
- A1 from Moody’s
The Nationwide Peak 10 annuity is the latest addition to the insurer’s diverse product lineup and its first annuity that is in partnership with AmeriLife – a national leader in developing and distributing annuities and retirement planning solutions.
For 50 years, AmeriLife has partnered with the nation’s leading insurance carriers to provide value and quality to customers that are served through a national distribution network of more than 200,000 insurance agents and advisors.
Given that fixed indexed annuities have become a financial solution of choice for many retirees and those who are approaching retirement, Nationwide has added to its product lineup with the Peak 10 fixed indexed annuity.
You can access our Annuity Buyers Guide here for more information on how fixed index annuities work, and to help you determine whether or not this type of annuity would be right for you and your specific objectives.
Before we get into the gritty details, here are some legal disclosures we need to provide…
This is an independent product review, not a recommendation to buy or sell an annuity. Nationwide Financial has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
How Nationwide Financial Describes the Peak 10 Fixed Indexed Annuity
Nationwide describes the Peak 10 fixed indexed annuity as a single-purchase-payment deferred indexed annuity that is designed for helping you prepare for retirement.
It offers growth potential for your investment, while also protecting your principal (and your previous gains) from market losses. This fixed indexed annuity offers returns that are based on the changes in an underlying index, such as the S&P 500 Composite Stock Price Index.
There are actually four indexes that you can choose from with the Nationwide Peak 10 annuity, including the:
- J.P Morgan Cycle Index – This index is exclusively available within the Nationwide Peak 10
- AllianceBernstein Growth and Value Balanced Index – This index is also only available via the Peak 10 annuity
- S&P 500 Price Index
- S&P 500 Daily Risk Control Index
In this case, the Peak 10 annuity from Nationwide can receive earnings when the index goes up, but if the index falls or incurs a negative return in a given year, the principal in the annuity is still protected.
There are a variety of ways that indexes and crediting strategies may be set up – which is yet another way that the Nationwide Peak 10 fixed indexed annuity is considered too flexible and can essentially be “customized” to meet many different goals and objectives – both before and after retirement.
Further, the Peak 10 annuity also offers a specified minimum that the contract value will not fall below, regardless of the performance of the underlying index. There are a few more “bells and whistles,” too, with the Nationwide Peak 10 annuity, including:
- Tax-deferred growth. There is no tax due on the gain in the annuity until the time of withdrawal. This can allow your funds to grow and compound exponentially – especially as compared to a comparable investment that is taxable.
- Death benefit. A death benefit can be paid to you or your surviving spouse, regardless of which one of you owns the contract or who passes away first.
Should you opt to start taking income from the Nationwide Peak 10 annuity, you can receive guaranteed lifetime withdrawals that will never decrease in amount – even if the value of the account falls to zero.
You can choose between two income alternatives with the Peak 10 annuity from Nationwide. These include:
- Guaranteed Income Solution
- Bonus Income + Rider
The Guaranteed Income Solution is a built-in feature of the Peak 10 annuity, and it is offered at no additional premium charge. This option offers a 4% simple interest “roll-up” on the income benefit base (i.e., your premium) for ten years, or until you make your first withdrawal – whichever occurs first.
If you choose the Bonus Income+ Rider, you can have a 10% credit to the income base (i.e. your premium). This feature offers a 7% simple interest roll-up from there for ten years, or until the first lifetime withdrawal – whichever occurs first. Further, you are also allowed to make one non-lifetime withdrawal that will neither stop the roll-up nor lock in the lifetime withdrawal percentage.
It is important to note, though, that the Bonus Income+ rider requires you to pay an additional charge. This added cost is 1.00% if the annuity is based on only one life, or 1.30% if it is based on two – such as you and your spouse.
To check out more details regarding these income solutions on the Nationwide Peak 10 annuity you can go here.
Additional features on the Peak 10 annuity include:
- Free withdrawal of up to 10% of the contract value each year – even during the surrender charge period
- Long-term care/confinement waiver
- Terminal illness waiver
- Injury waiver
For more details about the Nationwide Peak 10 annuity, you can go directly to the company’s product page here.
You can also access the Nationwide Peak 10 Annuity Product Guide here.
How an Insurance or Financial Advisor Might “Pitch” the Nationwide Peak 10 Annuity
According to a recent Advisor Authority study, protecting against stock market losses due to the COVID-19 pandemic is the number one financial concern on the minds of investors and retirees today.
Based on that, it is possible that an insurance or financial advisor might present the Nationwide Peak 10 annuity as a way to generate higher returns than many other fixed alternatives, as well as to keep income safe, regardless of what happens in the stock market. Therefore, the Peak 10 can also work well in a low interest rate environment.
In addition, the tax-deferred growth of your money inside of the contract can also be a bonus – and it could even allow for an additional option for tax-advantaged accumulation, even if you have “maxed out” other alternatives like an IRA and/or employer-sponsored retirement plan like a 401(k).
But even with all of these awesome features, you really need to be careful, as there are some “tradeoffs” you may need to make with this product. For instance, even though you have the ability to obtain a positive return based on the performance of an underlying index (or indexes), the upward potential is capped.
What About Any Fees on the Nationwide Peak 10 Annuity?
There are no annual contract or administration fees on the Nationwide Peak annuity. However, that doesn’t mean that you still won’t incur charges in various situations. For instance, to add the bonus income rider, you (and your spouse, if applicable) will be required to pay an additional premium. This added cost could, in turn, lower the overall return that you generate from the annuity.
Also, if you need to withdraw more than 10% of the money in the account from the annuity during the first five years (aka, during the annuity’s surrender period), you will incur a fee.
Nationwide Peak 10 Annuity Withdrawal/Surrender Charge Schedule
In addition, if the distribution(s) from the annuity occurs before you turn age 59 ½, you could also incur an “early withdrawal” charge of 10% from the IRS. This is in addition to any taxes that you might owe.
With that in mind, this (and for that matter, any) annuity should be considered a long-term financial commitment. So, the money that you contribute to this annuity should not consist of funds that you might need to access for an emergency in the future.
To review additional details regarding the Nationwide Peak 10 fixed indexed annuity, you can access the Peak 10 brochure here.
The Annuity Gator’s End Take on Nationwide’s Peak 10 Fixed Index Annuity
Where this annuity may work best:
Although this fixed indexed annuity offers many nice benefits, it will typically work the best for those who are seeking the following attributes:
- Safety of principal
- The opportunity for additional, index-linked growth, which can provide a higher return than a regular fixed annuity
- Guaranteed income for life – for an individual or for two spouses
Where it works the worst:
Conversely, there are some areas where the Peak 10 annuity from Nationwide Life might not be the best option. That may be for people who:
- Will need access to more than just 10% of their funds within the annuity’s 10-year surrender charge period
- Do not intend to use the lifetime income feature
If you are still considering the purchase of the Peak 10 fixed indexed annuity from Nationwide, but you’re currently on the proverbial fence regarding whether or not it will be right for you, we can help you to “test” it, based on your specific scenario, at no cost or obligation.
Just let us know if this is something that you are interested in doing, and we’ll get on the case right away! We are also happy to compare the Peak 10 (or any other) annuity against an annuity that you already own. This could help to determine whether or not your current annuity is still on track with the short- and long-term financial goals that you have.
While there are many factors that need to be taken into consideration when you are buying an annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do.
With regard to the Peak 10 fixed index annuity from Nationwide, you can rest assured that you (and your spouse, if applicable) will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall short – and there could be something else out there that is a better fit for you.
If you have any additional questions on the Nationwide Peak 10 annuity, and/or other income-related products, Annuity Gator is here to help. We can also run side by side annuity comparisons in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.
Do You Have Any Additional Questions About the Nationwide Peak 10 Annuity? Did You Happen to Notice Any Mistakes on this Review?
We realize that this annuity review has run long. But quite frankly, we would much rather that you have “too much” information on this product than to not have enough. So, if you found this annuity review of the Peak 10 fixed indexed annuity to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too).
In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.
Are there any other annuities that you would like to learn more about?
If so, just give us a shout and let us know, and our team will get to working on them right away. Be sure to check back often for any of the new reviews that are added to our massive annuity review database.
The Annuity Gator
P.S If you would like to read more of our Nationwide annuity reviews here are some links to check out:
- Nationwide Destination C Variable Annuity
- Nationwide New Heights 12 Annuity
- Nationwide Summit Fixed Indexed Annuity
- Nationwide New Heights 9 Fixed Indexed Annuity
- Nationwide Life Destination Architect 2.0 Variable Annuity
- Nationwide Life MarketFlex Advisor Variable Annuity
- Nationwide Best of America Future Venue Variable Annuity
- Nationwide Advisory Solutions Single Premium Immediate Annuity
- Nationwide INCOME Promise Select Single Premium Immediate Annuity