MYG 5-Year with MVA review

Yes, for the right buyer. If you want a 5-year locked rate from a financially strong carrier, no rider fees, and RMD-friendly terms, this does exactly what it is supposed to do. It is less appealing if you are uncertain about the 5-year commitment, because the MVA adds a layer of early-exit risk that a plain MYGA without an MVA would not carry.

The main reason to buy this is the locked rate. Guaranteed multi-year rates on MYGAs function like longer-duration CDs inside a tax-deferred wrapper, and Athene's rate bands by premium size — the $100,000-plus tier carries a meaningfully higher rate than the under-$100,000 band. A buyer moving IRA money into a 5-year deferral window ahead of retirement gets a predictable, tax-deferred return with no ongoing fees and a carrier rated A+ by A.M. Best.

I think this is best for someone in their late 50s to early 70s who wants to park a meaningful portion of retirement savings for five years, knows they will not need more than 10% per year during that window, and prefers certainty over any market-linked upside. It fits well in qualified accounts because RMDs are treated as free withdrawals. It is a poor fit for anyone who is unsure about the time horizon or is buying in a state where the MVA applies and rates are rising.

You are buying a contractual promise that your initial premium will grow at a fixed rate for the full 5-year term — no caps, no participation rates, no index risk. What you give up is liquidity beyond 10% per year and the possibility of a higher return if rates rise. The MVA ties the effective surrender value to a benchmark interest rate curve, so if you exit early and rates have gone up since you bought, your actual walkaway amount may be less than the stated contract value minus the surrender charge alone. That is different from a traditional MYGA and is worth understanding before buying.

The Multi-Year Fixed Strategy credits a guaranteed interest rate for the full 5-year term on initial premium. The rate does not adjust, re-declare, or reset during the term — what you are quoted at issue is what credits to maturity. As of April 2026, the declared rates were 4.90% for contracts under $100,000 and 5.20% for contracts at $100,000 or more; those figures can change for new contracts and are not a permanent feature of the product. Additional premiums go into the 1-Year Fixed Strategy, where the rate renews annually and is guaranteed never to fall below the contractual minimum disclosed at issue. That two-bucket design matters: the initial premium locks in, while any later additions are subject to annual re-declaration.

The confinement and terminal illness waivers are the secondary feature worth noting. If after year one you are confined to a qualified care facility for 60 consecutive days or more, you can access 100% of the accumulated value without surrender charges or MVA (not available in CA or MA). The terminal illness waiver works similarly — a diagnosis expected to cause death within a year triggers penalty-free access to the full value (not available in CA). For a 5-year annuity held by someone in or near retirement, these provisions are meaningful insurance against the scenario where a health event forces an early exit.

The free-withdrawal provision starts in year one: up to 10% of accumulated value as of the most recent contract anniversary is available each year without charge. That is more accessible than some MYGAs that restrict free withdrawals to years two through five. RMDs attributable to this contract are treated as free withdrawals even if they exceed the 10% limit, which matters for IRA owners who cannot defer distributions indefinitely.

For amounts above the free-withdrawal threshold, the schedule runs 8%, 7%, 6%, 5%, 4% across the five years. On top of that, the MVA can increase or decrease the effective penalty depending on where interest rates stand relative to the 10-Year Point on the A-Rated US Bloomberg Fair Value Curve at the time of surrender. A rising-rate environment amplifies the cost of an early exit; a falling-rate environment can actually reduce it. The MVA does not apply in AK, CT, HI, IN, MN, MO, NJ, OH, OR, PA, SC, or WA — buyers in those states get a simpler, more predictable surrender structure.

There is no base contract fee and no rider fee — the contract has a zero explicit cost structure. The trade is that the carrier earns its margin through the spread between what it invests your premium in and what it credits you, not through a disclosed fee. That is standard for MYGAs and fixed annuities generally.

The real cost to understand is the MVA. It is not a fee in the traditional sense, but it is an adjustment that can work against you if you surrender early during a rising-rate environment. In most states where Athene sells this product, it applies. Buyers who are truly committed to the 5-year horizon will likely never encounter it; buyers who are less certain about the commitment should weigh whether a MYGA without an MVA provision would be a better fit.

Legal Entity: Athene Annuity and Life Company

Parent: Apollo Global Management

A.M. Best Rating: A+

Athene is a major fixed annuity carrier backed by Apollo Global Management. The A+ A.M. Best rating reflects strong financial strength within the industry. Athene's annuity platform is mainstream and widely distributed through independent agents, which generally means competitive pricing relative to carrier quality.