Understanding Market Value Adjustment Annuities | SafeMoney.

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Learn how Market Value Adjustment Annuities work and their impact on interest rates. Explore safe money alternatives for your retirement planning. Related Articles Market Value Adjustment | Annuity Guide What Is A Market Value Adjusted Annuity What Is An Annuity | Annuity Guide What Happens To An Annuity If The Stock Market Crashes Key Takeaways Market Value Adjustment Annuities adjust based on interest rate changes, impacting your returns. These annuities offer a safe money alternative for retirement planning. Consider using retirement calculators to evaluate your options. Consult a SafeMoney certified advisor for personalized guidance. Understanding MVA can help you make informed decisions about guaranteed solutions. Quick Answer Market Value Adjustment Annuities (MVAs) offer potentially higher interest rates by sharing interest rate risk with the policyholder. They adjust the annuity's value based on current interest rate conditions during withdrawals or surrenders. SafeMoney Editorial Team  |  Reviewed by Licensed Financial Professionals  |  Updated Regularly What is a Market Value Adjustment Annuity? Market Value Adjustment Annuities (MVAs) are a type of fixed annuity that includes a feature allowing the insurance company to adjust the annuity's value based on prevailing interest rates. This adjustment can provide higher interest rates to the policyholder by sharing some of the interest rate risk. MVAs are commonly found in fixed index annuities and multi-year guarantee annuities (MYGAs). How Does a Market Value Adjustment Work? When you purchase an MVA annuity, your funds grow at a fixed interest rate guaranteed by the insurance company for a specified period. The insurer invests your premium in conservative, interest-bearing instruments. If you decide to surrender your annuity or withdraw more than the allowed annual free withdrawal amount, the Market Value Adjustment comes into play, adjusting the surrender value based on current interest rates. Feature Standard Fixed Annuity MVA Annuity Interest Rate Fixed Potentially Higher Interest Rate Risk Held by Insurer Shared with Policyholder Adjustment Factor None Based on Market Conditions When Does a Market Value Adjustment Apply? The Market Value Adjustment is triggered when you surrender your