Nationwide Peak 10 review

Yes, for the right buyer. This is a good annuity for someone who wants accumulation potential with principal protection and values having a built-in income option they can activate later without paying a separate rider fee. It is less appealing for someone whose primary goal is maximizing lifetime income payouts, because dedicated income FIAs will generally offer higher payout percentages.

The main reason to buy Nationwide Peak 10 is accumulation with downside protection and the flexibility to turn on income later. The secondary reason is the built-in Guaranteed Income Solution, which provides a 4% simple interest roll-up on the income benefit base for 10 years at no additional cost. In real life, this is the type of annuity someone buys when they are not sure whether they will need lifetime income but want the option available. They get a competitive accumulation product today with an income floor they can activate if their plans change.

I think Nationwide Peak 10 is best for someone who wants a longer-duration accumulation annuity with income optionality, values having multiple index choices, and is comfortable with a 10-year commitment. It is also a reasonable fit for someone who is 10 or more years from retirement and wants to build an income base while their money grows. It is less attractive for someone who wants the highest possible income payout percentages, needs frequent access to principal, or is uncomfortable with a 10% surrender charge in the first two years.

You are not buying direct stock market participation or a guaranteed income annuity. You are buying a principal-protected insurance contract that credits interest based in part on the performance of selected indices, with a built-in income feature you can choose to activate later. The real value here is the combination of accumulation potential and income optionality in a single product from a top-rated carrier, without paying an additional rider fee for the income feature.

Nationwide Peak 10 lets you allocate among a fixed account and several indexed account options tied to a diverse lineup of indices, including the S&P 500 with 1-year cap and 2-year participation rate options. You can allocate across up to five account options, and caps are tiered by premium amount. Interest is credited based on index performance up to the stated cap or participation rate, with a floor of zero — meaning the indexed accounts cannot lose value due to market declines.

The practical takeaway is that Peak 10 offers meaningful crediting diversity. Buyers can blend shorter-term cap strategies with longer-term participation rate strategies, which gives more flexibility than products that only offer one crediting method. The specific indexes and rates change over time, so buyers should review the current rate sheet at the time of purchase.

The most meaningful secondary feature is the built-in Guaranteed Income Solution. This feature provides a 4% simple interest roll-up on the income benefit base for 10 years at no additional cost. When the buyer is ready to activate income, the payout percentages are based on age: 3.50% for ages 50–59, 4.00% for ages 60–71, and 4.50% for ages 72 and older.

To put that in practical terms, a $100,000 deposit would grow to a $140,000 income benefit base after 10 years of the 4% simple roll-up (assuming no withdrawals). At age 65, that would generate $5,600 per year in guaranteed lifetime income at the 4.00% payout rate. That is a reasonable floor, but it is not competitive with dedicated income FIAs that often offer higher roll-up rates and higher payout percentages.

The optional Bonus Income+ Rider is also available for an additional cost for buyers who want to enhance the income feature. That gives buyers a choice: use the built-in income feature at no cost, or pay for a potentially stronger income benefit.

This annuity allows free withdrawals of up to 10% of contract value annually. Amounts above that are subject to the surrender schedule of **10% / 10% / 9% / 8% / 7% / 6% / 5% / 4% / 3% / 2% / 0%** (schedule varies by state). A market value adjustment may also apply to withdrawals subject to surrender charges.

The 10% charge in both years one and two is the main liquidity concern. That is steep even by 10-year FIA standards, and it means a buyer who needs to fully surrender early would face a significant penalty. The schedule does step down after year two, but it does not reach zero until year eleven. RMDs are available free of surrender charges, which is important for IRA holders. The long-term care/confinement waiver is available from the date the contract is issued, and the terminal illness waiver becomes available after year one, both for annuitants issued at age 80 or younger.

There are no annual fees for the base contract or the built-in Guaranteed Income Solution. The only explicit fee applies if the buyer elects the optional Bonus Income+ Rider.

The less obvious tradeoffs are structural. Upside is limited by caps and participation rates, and those will vary over time. The 10-year commitment is long, and the front-loaded surrender charges are among the highest in the peer group. The built-in income payout percentages are modest — buyers who are primarily shopping for income will find higher rates elsewhere. And the MVA adds another layer of cost on early withdrawals above the free amount.

Nationwide Peak 10 is issued by Nationwide Life and Annuity Insurance Company or Nationwide Life Insurance Company, based in Columbus, Ohio. Nationwide is a Fortune 100 mutual company founded in 1926 with $322.3 billion in total assets. The company carries ratings of A+ from S&P, A+ from AM Best (second highest of 16 rating levels), and A1 from Moody's. Nationwide is one of the largest and most diversified insurance and financial services companies in the United States.