Annuity Rate Shifts in 2025: What Retirees Need to Know
An estimated $63 billion worth of annuity contracts are coming due in 2025—here’s what that means for your money and how to take advantage of current annuity rates.
If you purchased a fixed-rate annuity (also known as a MYGA – Multi-Year Guaranteed Annuity) in the past few years, your contract may be nearing the end of its guaranteed term. In 2025, over $63 billion worth of MYGA contracts are expected to mature, representing one of the largest waves of annuity turnover the industry has ever seen.
This surge creates both an opportunity and a decision point for consumers: Should you renew, roll over, or reallocate your annuity dollars?
Let’s break it down.
Why So Many Annuities Are Coming Due in 2025
Between 2020 and 2022, annuity sales surged as interest rates rose. Many individuals locked in multi-year guaranteed annuities offering fixed interest rates for 3, 5, or even 7 years.
Here’s where the numbers land:
- 71% of contracts maturing this year are from 3-year MYGAs sold in 2022 — worth $44.86 billion
- 25% are from 5-year MYGAs sold in 2020 — worth $15.6 billion
- The remaining $2.38 billion comes from longer-term 7-year annuities
When these guaranteed terms end, there are no surrender charges, giving contract holders the freedom to move their money.
Understanding Your Options at Renewal
When your fixed-rate annuity matures, you generally have three choices:
- Renew with your current carrier at their current annuity rates
- Roll over to a new annuity product with better terms or different features
- Withdraw the money (which may have tax consequences)
According to LIMRA, an estimated $15.25 billion of 3-year MYGAs coming due will switch carriers, typically via a 1035 Exchange—a tax-free rollover to another annuity product.
Why the rush to roll over?
Because today’s annuity rates are still attractive, even after some market fluctuations. As of 2025, the average 3-year MYGA rate is about 4%, which is still competitive with rates offered when many of these contracts were originally purchased.
Top MYGA Rates Right Now
For consumers looking to secure a new MYGA, here are some of the current top-performing contracts (as of mid-2025):
Top 5 Three-Year MYGA Rates
| Rank | Rate | AM Best Rating |
|---|---|---|
| 1 | 5.85% | B++ |
| 2 | 5.45% | A− |
| 3 | 5.40% | B++ |
| 4 | 5.38% | B++ |
| 5 | 5.35% | B++ |
Top 5 Five-Year MYGA Rates
| Rank | Rate | AM Best Rating |
|---|---|---|
| 1 | 6.05% | B++ |
| 2 | 5.75% | B++ |
| 3 | 5.65% | A− |
| 4 | 5.60% | B++ |
| 5 | 5.60% | A− |
Disclaimer: The MYGA rates shown above are current as of May 23, 2025, and are subject to change without notice. Rates and carrier ratings are provided for informational purposes only and may vary based on state availability, purchase amount, and other factors. Please consult a licensed financial professional to confirm current rates and determine suitability for your financial goals.
How to Maximize Current Annuity Rates
Many consumers are looking to reinvest into one of the following:
- New MYGAs with competitive rates and fresh term options
- Fixed Indexed Annuities (FIAs), which offer potential for higher returns linked to market performance with no direct market loss
These options depend on your risk tolerance, income needs, and retirement goals.
If you’re seeking stable, predictable growth, a MYGA may still be your best fit. But if you’re concerned about inflation or want the opportunity to earn more based on market performance—without risking your principal—indexed annuities could offer a smart alternative.
The Industry’s Digital Shift Makes Transfers Easier
Transferring from one annuity to another used to be slow and paper-heavy. But the insurance industry is adopting a “Digital First” initiative, making it faster and easier to execute 1035 Exchanges.
That’s good news for consumers — a smoother transfer process means you can take advantage of competitive annuity rates without delay.
Should You Act Now?
With over $63 billion coming due this year, competition is heating up among insurers to retain or attract your annuity dollars. Some insurers are prioritizing retention, while others are offering aggressive rates and bonus features to win your business.
The key takeaway: If you own a MYGA or fixed-rate annuity set to mature this year, don’t wait until the last minute. Comparing your options now could help you secure a better rate or choose a product that better fits your future goals.
Why Annuities Remain a Smart Choice for Retirement
Even in a fluctuating market, annuities remain a popular tool for:
- Tax-deferred growth
- Guaranteed income planning
- Principal protection
- Legacy transfer
Most retirees appreciate the peace of mind that comes with predictable returns — especially in volatile markets. Whether you stick with a MYGA or consider a fixed indexed annuity, both provide safe money options that align with retirement income goals.
Final Thoughts: Talk to a Trusted Financial Professional
If your annuity is maturing soon, now is the time to review your options with a licensed financial advisor. An expert can help you:
- Evaluate today’s top MYGA rates
- Compare alternative annuity products
- Navigate a 1035 Exchange with minimal hassle
- Align your annuity decision with your retirement income plan
At SafeMoney.com, our network of independent financial professionals is here to guide you — with no obligation and zero pressure.
🧑💼 Written by Brent Meyer, founder and president of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment, tax, or legal advice. Please consult a licensed financial advisor before making any financial decisions. SafeMoney.com is not affiliated with any insurance carriers and does not guarantee annuity rates.
