Multi-Year Guaranteed Annuity for Retirees
Jason Stolz CLTC, CRPC
Multi-Year Guaranteed Annuity for Retirees plans provide predictable growth, principal protection, and tax deferral — three essential pillars of retirement stability for individuals who want certainty rather than market exposure. A Multi-Year Guaranteed Annuity (MYGA) is a type of fixed annuity that locks in a guaranteed interest rate for a defined period, typically between two and ten years, offering retirees a stable alternative to fluctuating investments such as variable or fixed indexed annuities. Unlike market-linked products, MYGAs do not rise or fall with stock performance — the rate is declared at issue and guaranteed for the full contract term, making them especially attractive for retirees replacing low-yield bonds or CDs; for a deeper comparison, see our breakdown of Fixed Annuity vs CD. At Diversified Insurance Brokers, we help retirees nationwide compare current fixed annuity rates, evaluate insurer strength, and design laddered strategies aligned with income timing and liquidity needs. Retirees frequently use MYGAs because they provide guaranteed interest for the full term, protect principal from market loss, allow tax-deferred compounding without annual taxation, offer flexible durations to match personal timelines, and include built-in beneficiary provisions that support estate planning. MYGAs integrate smoothly into broader retirement income frameworks, complementing Social Security and pension income while supporting Required Minimum Distribution coordination under SECURE 2.0 RMD rules, pairing effectively with lifetime income annuity strategies, enhancing tax-efficient withdrawal sequencing, and positioning assets for future annuitization using exclusion ratio planning. Rather than committing all capital to a single maturity, many retirees implement a MYGA ladder strategy, dividing funds across staggered terms — for example allocating $100,000 to a three-year contract and $100,000 to a five-year contract — creating periodic liquidity opportunities while capturing longer-term yields, similar to a bond ladder but without market volatility and with the added benefit of tax deferral.
💰 Current Fixed Annuity Rates (as of February 2026)
| Term | Rate | Provider | Product | AM Best Rating |
|---|---|---|---|---|
| 1 Year | 4.15% | GCU Life | 1+4 Choice | A- |
| 2 Years | 5.25% | CL Life | CL Sundance | B++ |
| 3 Years | 5.85% | Wichita National | Security 3 MYGA | B+ |
| 4 Years | 5.10% | Oceanview Life | Harbourview | A |
| 5 Years | 6.30% | American Gulf | Anchor MYGA | B++ |
| 6 Years | 6.30% | American Gulf | Anchor MYGA | B++ |
| 7 Years | 6.30% | American Gulf | Anchor MYGA | B++ |
| 8 Years | 5.40% | EquiTrust Life | Certainty Select | B++ |
| 9 Years | 5.30% | Talcott Financial | EverStead | A- |
| 10 Years | 6.05% | Wichita National | Security MYGA | B+ |
Want help comparing terms? Use our Annuity Income Calculator or request a personalized quote below.
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FAQs: Multi-Year Guaranteed Annuity for Retirees
What is a Multi-Year Guaranteed Annuity (MYGA)?
A MYGA is a type of fixed annuity that guarantees a set interest rate for a specific term, usually between 2 and 10 years. Your principal is protected from market losses, and interest compounds tax-deferred until withdrawals begin.
How are MYGAs different from CDs?
MYGAs typically offer higher interest rates than CDs of similar terms and provide tax-deferred growth. CDs are FDIC-insured through banks, while MYGAs are backed by the issuing insurance company and state guaranty associations within statutory limits.
Are MYGAs safe?
Yes. MYGAs are considered conservative retirement products. They are backed by the financial strength of the issuing insurer and supported by state guaranty associations up to coverage limits.
What happens when a MYGA term ends?
At maturity, you can withdraw your funds, renew into another MYGA, transfer to a different annuity, or convert the contract into a lifetime income stream.
Can I withdraw money before the term ends?
Most MYGAs allow up to 10% free withdrawals annually. Larger withdrawals during the surrender period may incur surrender charges or a market value adjustment.
Do MYGAs provide lifetime income?
MYGAs focus on guaranteed growth during the term. At maturity, you can elect to annuitize the contract or roll into an income annuity to create lifetime payments.
Can a MYGA be used inside an IRA?
Yes. MYGAs can be purchased within Traditional or Roth IRAs. Required Minimum Distribution rules must be followed if held in qualified accounts.
How are MYGA earnings taxed?
Earnings grow tax-deferred. Taxes are owed only when withdrawals are taken, and gains are taxed as ordinary income.
Can I name beneficiaries?
Yes. MYGAs allow you to designate beneficiaries so assets pass directly without probate in most cases.
Who is a MYGA best suited for?
MYGAs are ideal for retirees or pre-retirees seeking principal protection, predictable growth, and tax-deferred accumulation without exposure to market volatility.
About the Author:
Jason Stolz, CLTC, CRPC and Chief Underwriter at Diversified Insurance Brokers, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
