What Is Nationwide New Heights Select?

Nationwide New Heights Select is a fixed indexed annuity. Your money is backed by Nationwide’s claims-paying ability and never goes directly into the stock market. Instead, your contract credits interest based on the performance of one or more market indices plus declared rate components, subject to the contract’s crediting factors. When an index struggles, your account value is protected from negative returns; when it performs well, your contract can capture part of that upside.

For many of our clients, New Heights Select is most attractive as a “core” retirement asset: a place to move some conservative money that needs both growth potential and clear guarantees around principal and income.

How the Growth Engine Works

When you fund a New Heights Select contract, your purchase payment is allocated among different strategy options. Each strategy tracks an underlying index (such as a large-cap stock index or a global diversified index) and applies the contract’s crediting terms—index allocation, declared rate allocation, and a strategy spread. The index performance and declared rate are combined and then reduced by the spread to determine any interest credited for that term.

A unique feature is the contract’s Daily Accumulation Value (DAV). Instead of waiting until the end of a term to see how you’re doing, the DAV tracks your value each business day, reflecting both the index-linked component and the contract’s built-in “return of purchase payment” guarantee. That daily tracking makes it easier to understand how the annuity is behaving in different markets and where your protected value stands at any given time.

Locking In Gains and Protecting Principal

New Heights Select is built to protect retirement dollars from major market setbacks. Your principal and any interest already credited are insulated from index losses, and the contract cannot lose value solely because an index goes negative. At the end of each strategy term, any positive earnings are locked in and become part of your contract value going forward—those gains cannot be given back due to future downturns.

You also have a one-time-per-term lock-in feature for each strategy option. If the index has had a strong run and you’re happy with the gain, you can elect to lock in that index value before the term ends, effectively securing current performance against any potential pullback for the remainder of that term. This can be appealing for clients who are close to retirement and want to capture a favorable market stretch without needing to “time” the market perfectly.

In addition, the contract includes a return of purchase payment guarantee. As long as you follow the contract rules, Nationwide guarantees that after the surrender charge period—or at death or qualifying long-term care/terminal illness events—you will receive at least your original purchase payment back (adjusted for withdrawals), even if markets were weak for much of the term. That structure is one reason many conservative savers view New Heights Select as a “sleep at night” asset within their broader portfolio.

Optional Lifetime Income Riders

For clients who want built-in retirement paychecks, Nationwide offers two optional income riders with New Heights Select. These riders are elected when the contract is issued, carry an additional annual charge, and are designed to turn your annuity into a predictable income engine later in retirement.

High Point 365® Select Lifetime Income Rider with Bonus

This version is for clients who want a strong, guaranteed growth path for their future income base. At issue, Nationwide boosts the rider’s Minimum Income Benefit Value by adding a 30% bonus to your purchase payment. From there, that income value is guaranteed to grow every day at a 9.5% compound annual rate for up to 12 years, or until you start lifetime withdrawals—whichever comes first, assuming you follow the rider’s rules and avoid excess withdrawals.

Once you’re ready to flip the switch on income (after at least one contract year and once the younger covered life reaches the required age), your lifetime payment is based on the higher of the Minimum Income Benefit Value or the highest Daily Accumulation Value the contract has ever reached, multiplied by a payout percentage tied to your age and whether you choose single or joint life. Deferring income can increase both the benefit base and the payout percentage, creating meaningfully higher guaranteed income for clients who can wait a few extra years.

For couples, the joint-life option can guarantee income as long as either spouse is living, which can pair nicely with strategies that coordinate Social Security and annuity income for survivors.

High Point 365® Select Lifetime Income Rider (No Bonus)

The second income rider option is focused on tracking and locking in market-driven growth while still providing a guaranteed floor. Here, the High Point Income Benefit Base automatically locks in every time the DAV reaches a new high. In addition, the rider’s Minimum Income Benefit Value grows at a 1% guaranteed rate for up to 10 years, providing a baseline of steady growth even if markets are flat or choppy.

Your future income is based on the greater of this Minimum Income Benefit Value or the highest locked-in DAV, multiplied by the rider’s lifetime payout percentage. As with the bonus rider, payout percentages are designed to increase as you defer income, within the ranges specified in the rider schedule. For clients with a longer time horizon who want strong participation in index growth—with less emphasis on an upfront bonus—this rider can be a compelling way to position money for lifetime income down the road.

If you’d like a deeper dive into how these kinds of benefits work in general, you may also find our article on how annuity income riders work helpful.

Enhanced Death Benefit Riders for Legacy Planning

Some clients are less focused on income and more focused on leaving a protected legacy. For that group, New Heights Select offers enhanced death benefit (EDB) riders that can grow the amount payable to beneficiaries beyond the regular contract value.

The High Point® Select Enhanced Death Benefit rider builds a death benefit based on the greater of two measures: the highest Daily Accumulation Value the contract has reached (subject to certain age limits), or a Minimum EDB Value that grows daily at a 4% annual rate until it reaches either 200% of the original purchase payment, the contract anniversary after the older annuitant turns age 80, or when the first death benefit is due—whichever occurs first. There is also a version with a purchase payment bonus, which immediately increases the starting value used for both the contract and the EDB calculation.

Because these riders are designed to enhance the legacy value rather than income, they can work well for clients who want a protected way to pass assets to children or grandchildren while still keeping those dollars safe from market downturns. When combined with thoughtful beneficiary designations and a good understanding of annuity death benefit rules, they can be a powerful part of an estate strategy.

Access, Liquidity, and Surrender Charges

Even though New Heights Select is designed as a long-term retirement contract, Nationwide does provide structured access to your money. After the first contract anniversary, you can generally withdraw up to a set percentage of your contract value each year (currently 7% during the surrender period, increasing to 10% after) as “free withdrawals” without surrender charges. Required minimum distributions from tax-qualified contracts are typically treated as free withdrawals as well.

Withdrawals above the remaining free-withdrawal amount during the surrender period are subject to surrender charges and may be adjusted by a market value adjustment (MVA), depending on the state. The MVA can increase or decrease the amount received based on how interest rates have moved since issue. Nationwide also credits “earnings to date” on free withdrawals and on death benefits, so you don’t forfeit accumulated interest when using the contract as intended. For a broader overview of how free withdrawal features work across carriers, you can review our guide on annuity free withdrawal rules.

As with any long-term annuity, it’s important to make sure money going into New Heights Select is not earmarked for short-term emergencies or near-term large purchases. We often help clients pair this annuity with more liquid vehicles, so the overall plan stays flexible.

How New Heights Select Fits in a Retirement Plan

In our practice, Nationwide New Heights Select is typically used in three main ways. First, as a growth-and-protection sleeve for clients who are uncomfortable leaving too much in the market but still need higher potential returns than CDs or money markets. Second, as an income foundation using one of the High Point 365® Select riders, often paired with Social Security, pensions, and other guaranteed sources to cover essential expenses. Third, as a legacy tool when the enhanced death benefit rider is added, especially for families where the client wants to create a more predictable inheritance while still benefiting from index-linked growth.

Because the contract’s mechanics can be complex—multiple indices, strategy options, crediting factors, and riders—it’s worth comparing it to other strong fixed indexed annuities for income and discussing the trade-offs. We pay particular attention to how the High Point benefit bases grow, how the payout percentages line up with your timing, and how the surrender schedule works alongside your broader liquidity plan.

Key Advantages

From our perspective, the main strengths of Nationwide New Heights Select include:

• Strong downside protection with upside potential. Your contract value is insulated from negative index returns while still having the ability to grow based on diversified indices and declared rate components.

• Daily tracking and lock-in of high points. The Daily Accumulation Value and high point functionality help you see and secure gains more transparently than some traditional FIA designs.

• Powerful income riders. The combination of a guaranteed growth path for the income base and increasing payout percentages can produce competitive lifetime income for clients who defer withdrawals and follow the rider rules.

• Flexible legacy options. Enhanced death benefit riders can grow a protected legacy value, including a minimum growth component and an optional purchase payment bonus.

• Big-company backing. Nationwide is a large, well-known insurer with a long history in the annuity space, which many clients find reassuring when committing dollars for the long term.

Factors to Consider

On the other side of the ledger, there are important considerations to weigh before purchasing:

• Complexity. This is not a “simple CD alternative.” Understanding how strategies, DAV, lock-ins, MVAs, and riders interact is essential. Our job is to translate those moving parts into clear, real-world outcomes.

• Rider charges. Income and enhanced death benefit riders come with ongoing fees, which reduce the contract value over time. In return, you get specific guarantees; we help you evaluate whether those guarantees justify the cost in your situation.

• Surrender period and liquidity trade-offs. Like other FIAs, New Heights Select is designed for long-term dollars. There are meaningful surrender charges if you exceed free-withdrawal amounts in the early years or need to exit fully before the surrender period ends.

• Tax treatment. As with other deferred annuities, gains are taxed as ordinary income when withdrawn, and distributions before age 59½ may face a 10% IRS penalty. For many retirees the tax deferral is a net benefit, but it’s important to coordinate with your broader tax plan.

Is Nationwide New Heights Select Right for You?

If you’re looking for a balance of protection, growth potential, and the ability to convert a portion of your nest egg into guaranteed lifetime income, Nationwide New Heights Select may deserve a close look. It can complement more traditional investments, help address the risk of outliving your assets, and provide added structure around legacy goals. At the same time, it’s just one tool among many, and we regularly compare it against other solutions—including fixed annuities, income annuities, and competing FIAs—to see which design best matches your goals, time horizon, and risk tolerance.

If you’re evaluating whether an annuity belongs in your plan at all, you might also appreciate our educational page on whether annuities are worth it, which walks through the broader pros and cons.

Compare Nationwide New Heights to Other Annuity Options

New Heights Select is one of many tools we use for clients who want predictable, protected retirement income. We don’t start with a product; we start with your goals, cash flow needs, and risk comfort—and then build from there.

Estimate Income from Nationwide New Heights Select

Curious what kind of guaranteed income New Heights Select might provide for your age, premium amount, and start date? You can use our retirement income calculator below to model different scenarios and then have our team refine the results based on live Nationwide illustrations.

Related Pages to Explore

• How Do Annuities Earn Interest?
• Do Annuities Pay an Income for Life?
• Bonus Annuity Pros and Cons
• What Is a Deferred Annuity?
• What Is a Deferred Income Annuity?
• Do Annuities Have Fees?