If you are searching for the highest paying annuities, the first thing I want you to know is this: there is no single “best” annuity for everyone. The highest paying annuity depends on what you want the contract to do. Some people want the highest lifetime income.
Others want the highest fixed rate. Others want protected growth tied to an index.
I’m John Stevenson, the Guaranteed Retirement Guy, and I believe in showing everything as transparently as possible.
Too often, people only get shown one or two annuity options, usually the ones an advisor wants to push. I prefer to lay the options out clearly so you can see what is actually paying the most based on your goals.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using our annuity calculator
Why “highest paying annuity” means different things
When people ask me about the highest paying annuities, I usually tell them we need to define what “highest paying” really means first.
That could mean:
- The highest annual lifetime income
- The highest immediate payout
- The highest guaranteed fixed rate
- The best long-term indexed growth potential
- The best option for a couple instead of a single person
Those are very different goals. A contract that pays the most lifetime income may not be the one that gives you the best liquidity.
A contract with the highest fixed rate may not offer any withdrawals. And an indexed annuity with strong upside potential may not be the best choice if your main goal is income right now.
That is why I always recommend looking at annuities by category, not just by headline number.
👉 Want help comparing the highest paying annuities for your situation? Schedule a call here.
Income riders often produce the highest lifetime income
If your main goal is guaranteed lifetime income, income riders are often where I start.
In many cases, income riders provide the highest annual lifetime income while still giving you more flexibility than traditional annuitized options. That flexibility matters. You can often buy the contract now and decide later when to turn the income on, depending on when you retire, when Medicare starts, or when you want to claim Social Security.
In the example I reviewed, I used a married couple in South Carolina. One spouse was 60, the other was 59, and they were placing $500,000 into an annuity.
For an immediate income start, one of the highest payouts came in at about $32,000 per year for life.
But when we deferred the income start by five years, the numbers improved significantly. In that case, one of the top income rider options produced about $49,000 per year for life for the couple, with no reduction later.
That is a big reason income riders are so popular. You can buy early, let the guaranteed benefit base grow, and then turn on the income later when the payout rate is more favorable.
💡 Pro Tip: If your goal is highest lifetime income, do not just look at today’s payout. Look at what happens if you defer income for 1, 3, 5, or even 7 years.
Some annuities offer higher temporary payouts, but they can drop later
This is where a lot of people get tripped up.
Sometimes you will see an annuity with a much higher starting payout than everything else. That sounds great at first. But in some cases, that higher payout is only temporary.
For example, certain contracts can offer accelerated income for a set number of years, then reduce the payout later. That can work well in very specific situations, like:
- Bridging the gap before Social Security starts
- Covering the early “go-go” years of retirement
- Creating more income before another pension or benefit begins
In one example, a deferred contract showed an initial payout of about $54,000 per year, but later dropped to around $33,000 per year for life.
That is not automatically bad. It just serves a different purpose.
If you want level lifetime income that never goes down, you need to filter those options carefully. I always tell people not to assume the highest first-year payout is automatically the best annuity.
👉 Want help finding an annuity that does not reduce income later? Schedule a call.
MYGAs can be the highest paying annuities for fixed growth
If you are not looking for income yet and instead want the highest fixed return, then a MYGA may be the better fit.
A MYGA, or multi-year guaranteed annuity, works a lot like a CD. It gives you a fixed interest rate for a set number of years. It is simple, predictable, and easy to understand.
When I compare MYGA options, I usually find that the 5-year, 7-year, and 10-year terms often offer the strongest rates.
In the example I reviewed, one 5-year MYGA showed a rate around 6.3% for a contract without withdrawals. A version with some withdrawal flexibility came in slightly lower, around 6.15%.
That difference matters. If you want the absolute highest rate, you may need to give up some liquidity. If you want easier access, the rate may be a little lower.
For someone starting with $500,000, a strong MYGA can produce substantial tax-deferred growth over time. And if the money is non-qualified, the gains continue growing tax deferred until you take them out.
MYGAs are a great option for people who want safety, simplicity, and strong guaranteed rates without the complexity of an income rider or index strategy.
SPIAs and DIAs still matter, but they are not always the top payout choice
Single premium immediate annuities, or SPIAs, are the classic annuity. You hand the insurance company a lump sum, and they start paying you income. Deferred income annuities, or DIAs, work similarly, except the income starts later.
These contracts still have a place. But if your only goal is the highest lifetime income, they are not always the top option compared with income riders.
Why?
Because with a SPIA or DIA, you usually give up more control of the money. In most cases, once you annuitize, you cannot simply surrender the contract and take the cash out the way you often can with other annuity types.
That said, SPIAs and DIAs can still be attractive if you want to customize the payout in a certain way.
For example, you may want:
- A life-only payout with nu refund
- Joint income for a couple
- A 20-year or 30-year certain period
- A cash refund for beneficiaries
That kind of structure can be useful, especially if you want income to continue to a spouse, child, or other beneficiary for a set period. But in exchange for those features, the payout may not be as high as the best income rider option.
So yes, SPIAs and DIAs can be good tools. They just are not always the highest paying annuities l if your focus is maximizing lifetime income.
Fixed indexed annuities can be strong for protected growth
A lot of people who call me are not looking for immediate income and are not excited by a plain fixed-rate MYGA either. What they want is market protection with some upside potential.
That is where fixed indexed annuities can come in.
A fixed indexed annuity does not directly invest your money in the market. Instead, it credits interest based on an index strategy, while protecting you from market losses. The challenge is that not all indexed annuities are equal.
This is where people need to be careful.
There are thousands of indexed crediting options out there. Some are tied to well-known benchmarks like the S&P 500. Others are tied to newer, more exotic indexes with short histories and back-tested performance.
I tend to be cautious with strategies that look amazing on paper but do not have a long track record. Just because an illustration looks strong does not mean the real-world results will hold up after renewal rates change.
That is why I pay close attention to the carrier, the index, and the renewal history.
💡 Pro Tip: In indexed annuities, the illustration is only part of the story. The real question is whether the company has a history of maintaining competitive participation rates and caps over time.
The company matters just as much as the annuity design
This is one of the most important points in the entire conversation.
When you are evaluating the highest paying annuities l, do not just chase the biggest number on the screen. You also need to look at the insurance company behind the contract.
That matters especially with fixed indexed annuities.
A company may offer a very high teaser participation rate in year one, then sharply reduce it later. Another company may start a little lower, but maintain more stable terms over time. In many cases, the second option can lead to a better long-term outcome.
I would rather recommend a carrier with a reputation for consistency than one with flashy illustrations and no meaningful track record.
The same goes for newer indexes and new carriers. That does not mean they are bad. It just means I want to be careful before using a client’s retirement money as a test case.
If your goal is growth, picking the right company is just as important as picking the right annuity type.
👉 Want help comparing carriers, not just contracts? Schedule a call with me here.
So which annuity pays the most?
Here is the simple answer.
If you want the highest annual lifetime income, income riders are often the top choice.
If you want the highest fixed guaranteed rate, MYGAs are usually where to look.
If you want protected growth with market-linked upside, a good fixed indexed annuity can make sense, but only if you choose the right carrier and strategy.
If you want classic annuitized income with certain period payout structures, SPIAs and DIAs still have a role.
That is why I do not believe in one-size-fits-all annuity recommendations. The highest paying annuity depends on whether you care most about income, growth, flexibility, liquidity, or legacy.
What I do believe in is transparency.
I want you to be able to see what is available in your state, compare companies side by side, and understand what you are actually buying before you make a decision.
Need help with finding the best annuity for your retirement?
Click here to schedule a call with me.
On the call, I can help you:
- Determine what type of annuity is best for you
- Find the highest paying annuities for your unique situation
- Answer any other questions you may have