Why it earned this rating
Our assessment
Peak 5 Series A is a clean, uncomplicated 5-year FIA from a carrier with strong financial backing. The tiered cap structure rewards larger deposits, and the MGSV and waiver provisions are solid. What holds it just short of a strong-option rating is the thin crediting menu — two indices and annual point-to-point only — which limits the upside strategies available compared to more competitive 5-year FIA designs.
The short version
This is a 5-year principal-protected annuity designed for people who want some index-linked growth potential without committing to a longer surrender schedule or paying for a living benefit. The MSCI EAFE index option is a small differentiator — it gives buyers a non-domestic equity benchmark that most short-term FIAs skip. The tradeoff is that the menu stops there; buyers who want multiple crediting strategies inside one contract will find more depth elsewhere.
Key facts
The full review
Is Nationwide Peak 5 Series A a Good Annuity?
Yes, for the right buyer. If you want a shorter FIA commitment, care about carrier strength, and do not need an income rider or an elaborate index menu, this is a reasonable product. It is less compelling for someone who wants multiple crediting strategies, a longer accumulation runway, or a path to guaranteed lifetime income built into the contract.
Why Someone Would Buy This Annuity
The practical case for Peak 5 Series A starts with simplicity and a short timeline. The 5-year surrender window is short enough that buyers who are 5-10 years from retirement can use this without locking money up through their distribution years. The tiered cap structure gives larger deposits meaningfully better terms — the S&P 500 cap jumps from 5.50% to 7.00% at $100,000, and the MSCI EAFE cap goes from 7.50% to 8.00%. Those are the rates as of December 1, 2025; they will change, but the tier differential is a structural feature, not a one-time promotion.
Who This Annuity Is Best For
I think Peak 5 Series A is best for someone who wants a principal-protected holding for a portion of their near-retirement savings, is comfortable with a 5-year lockup, and does not need income guarantees. The wide issue-age range (owner to 100, annuitant to 90) makes it accessible to older buyers who want a shorter-term allocation without the complexity of a multi-strategy product. It is less suited to buyers who want several index options, a built-in roll-up, or who might need the funds before year five.
What You're Really Buying Here
You are not buying direct market exposure. You are buying a guarantee that your principal will not decline from index losses, in exchange for capped upside and a 5-year restriction on full liquidity. The crediting mechanism credits interest annually based on index performance up to the cap — in a flat or down year, you earn nothing from the index, but you do not lose principal. In a strong year, your gain is limited to the cap. The fixed account option gives you a guaranteed rate as an alternative to index allocation, which is useful if you want certainty over any participation in market movements.
How the Core Feature Works
Peak 5 Series A uses annual point-to-point crediting with a cap on both available indices. At the end of each contract year, Nationwide measures the change in the index from the prior anniversary. If the index rose, you are credited interest up to the cap. If the index fell or stayed flat, you are credited zero — your principal is protected, but you earn nothing from that strategy for that year.
The two index choices are the S&P 500 and the MSCI EAFE (a developed-market international equity index). Having MSCI EAFE available is a modest differentiator for a 5-year FIA — most shorter-duration products stick to U.S. equity only. Buyers can allocate between the two indices and the fixed account in combinations that suit their outlook.
The guaranteed minimum cap is 2.00% annually, which means even if Nationwide adjusts the declared cap significantly downward over the surrender period, the floor is 2.00%.
Why the Secondary Feature Matters
The secondary features here are the waivers and the Joint Option death benefit. The Long-Term Care/Confinement Waiver and Terminal Illness/Injury Waiver both allow full access to contract value without surrender charges or MVA after the first contract year (subject to a maximum issue age of 80, and with state-specific variations in CT, CA, and NJ). For buyers who are concerned about long-term care or health events during a 5-year window, these provide a meaningful safety valve.
The Joint Option death benefit is also worth understanding. When a spouse is named as co-annuitant, the death benefit is payable upon the death of either spouse, and the surviving spouse may continue the contract at the death benefit value with no remaining surrender charges or MVA. That is a practical feature for couples using this inside a joint retirement planning strategy.
Liquidity and Surrender Schedule
The surrender schedule runs 9%, 8%, 7%, 6%, 5% — declining each year, with the first year carrying the steepest penalty. The 10% annual free withdrawal applies to contract value at the beginning of each term and is noncumulative, meaning unused amounts do not carry forward. Importantly, withdrawals from index accounts during a term forfeit any index earnings for that strategy for that year — so taking more than the free amount mid-term has a dual cost.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
A Market Value Adjustment (MVA) may also apply to amounts above the free withdrawal — meaning your effective surrender cost can fluctuate with interest rates, not just with the schedule. In a rising-rate environment, the MVA can increase your out-of-pocket cost; in a falling-rate environment, it may work in your favor. Not all states apply MVA, so check your state's terms.
RMD treatment is clean: if your required minimum distribution exceeds the 10% free withdrawal amount, Nationwide increases the free withdrawal threshold to match the RMD for that year. This matters for IRA-funded contracts where RMD amounts can grow over time.
Fees and Tradeoffs
There are no base contract fees and no rider fees — because there are no optional riders available. The cost of this annuity is structural: you give up uncapped index participation and full liquidity for five years in exchange for principal protection and some upside potential. That is the trade.
The crediting cap is the main ongoing tradeoff. S&P 500 caps in the 5.50%-7.00% range (as of December 2025) mean that in a year when the S&P 500 gains 15%, you earn the cap — not 15%. The MSCI EAFE caps run slightly higher, which is somewhat unusual and worth noting. The fixed account at 3.05%-3.20% provides a simpler alternative to index strategies.
There are no enhanced-participation accounts, no fee-based strategies, and no spread-based options to navigate. The simplicity is real.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Indexed Annuity |
| Surrender Period | 5 years |
| Issue Ages | Owner: 0-100; Annuitant: 0-90 (single life), 0-85 (joint) |
| Minimum Premium | $25,000 |
| Indices | S&P 500, MSCI EAFE |
| Crediting Methods | Annual Point-to-Point with Cap, Fixed Account |
| Free Withdrawal | 10% of contract value at beginning of each term annually (noncumulative); withdrawals from index account during the term forfeit potential index earnings for that term |
| MGSV | 87.5% of purchase payment (less withdrawals) at 1.75% minimum guaranteed interest rate |
| Death Benefit | Full contract value paid to beneficiaries; Joint Option allows spouse co-annuitant — death benefit payable upon death of either spouse; surviving spouse may continue contract at death benefit value with no remaining surrender charge or MVA |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Variations approved in CA, CT, DE, FL. Not approved in NY. MVA may not apply in all states. Terminal illness waiver not available in CA and NJ; in CT only available after second contract anniversary. |
Carrier snapshot
Legal Entity: Nationwide Life & Annuity Insurance Company
Parent: Nationwide Mutual Insurance Company
A.M. Best Rating: A+ (low confidence — verify current rating with carrier)
Final take
Peak 5 Series A is a sensible short-duration FIA for buyers who want principal protection, a defined 5-year window, and a clean product without rider complexity. The waiver provisions are generous, the RMD treatment is straightforward, and the Joint Option death benefit is a real planning tool for couples.
Where it falls short is breadth. Two indices and annual point-to-point only is a thin menu by current standards. If you are comparison-shopping 5-year FIAs, you will find competitors with more index choices, participation-rate options, and crediting strategies. Whether that matters depends on whether you actually intend to optimize crediting strategy or just want a safe holding — if it's the latter, Peak 5 Series A does the job.
This is not the annuity for someone who wants income guarantees, a longer accumulation runway with more aggressive crediting options, or who might need full access to their money within five years.