Nationwide Stable Income review

Yes, for the right buyer. This is a good annuity for someone who wants guaranteed lifetime income from a simple, fixed-rate product without the moving parts of an indexed or variable annuity. It is less appealing for someone who wants pure accumulation without paying for an income feature, because the GLWB charge is built in and cannot be removed.

The main reason to buy Stable Income is guaranteed lifetime income backed by a fixed interest rate and a Fortune 100 carrier. The secondary reason is the simplicity of the design. In real life, this is the type of annuity someone buys when they want to know exactly what their income will be, do not want to track index performance or subaccount values, and value the certainty that payments continue for life even if the contract value drops to zero. The brochure example tells the story well — a 60-year-old putting in $250,000 can take $17,375 per year immediately, or wait 10 years and take $32,125 per year. That kind of clarity is hard to find in most income-focused annuities.

Stable Income is best for someone in or near retirement who wants a predictable income stream they cannot outlive, prefers a fixed-rate product over an indexed or variable design, and is comfortable committing to a 7-year surrender period. It is also a reasonable fit for someone doing retirement income planning who wants to cover essential expenses with a guaranteed floor. It is less attractive for someone who wants maximum accumulation potential, wants to avoid paying for an income feature, or needs significant liquidity in the first few years.

You are buying a guaranteed paycheck for life, backed by a fixed interest rate and a Fortune 100 mutual company. The fixed annuity earns interest at a declared rate. The GLWB guarantees that you can withdraw a specific percentage of your purchase payment every year for life, regardless of what happens to the contract value. The real value is the combination of simplicity and certainty — you know your rate, you know your payout factor, and you know the income does not stop.

The built-in GLWB works by multiplying your net purchase payment by a lifetime income payout factor. That payout factor is based on your age at issue, whether you elect single or joint income, and how many contract years have elapsed before you begin withdrawals. The factor is credited daily based on days elapsed, which means you are not penalized for starting income mid-year.

The practical takeaway is that the longer you wait to start income, the higher your payout factor. Using the brochure example, a 60-year-old with $250,000 gets a 6.95% payout factor immediately ($17,375 per year) but a 12.85% factor after 10 years ($32,125 per year). Once income begins, payments continue for life even if the contract value reaches zero. That is the core promise, and it is backed by Nationwide's claims-paying ability.

The secondary value here is principal protection through the fixed-rate foundation. Unlike an indexed or variable annuity where credited interest depends on market performance, Stable Income earns a declared fixed rate during the initial 7-year guarantee period, with annual renewals after that (subject to a 1.00% minimum floor). That means the contract value grows predictably, which supports both the income guarantee and the death benefit.

For someone who is primarily buying this for income but also cares about what happens to the remaining value, the fixed-rate structure provides a level of certainty that market-linked products cannot match. The death benefit pays the full contract value with the MVA waived, which means beneficiaries are not penalized by market conditions at the time of death.

This annuity allows free withdrawals of up to 10% of contract value (based on the prior anniversary value) each year, with a minimum partial withdrawal of $100. Amounts above that are subject to the surrender schedule of **7% / 6% / 5% / 4% / 3% / 2% / 1%**. A market value adjustment may also apply in most states (not California).

The declining schedule is more buyer-friendly than many competitors that hold charges flat for several years before dropping. Nursing home and terminal illness waivers are available for buyers issued at age 80 or younger. Required minimum distributions are free of surrender charges and the MVA, which is an important detail for qualified money. Even with these provisions, this should not be treated as a liquid savings vehicle during the surrender period.

The main explicit fee is the **0.95% annual GLWB charge**, assessed quarterly. That fee is built into the product and cannot be removed. For context, 0.95% is reasonable compared to income riders on indexed and variable annuities, which commonly run 1.00% to 1.25% or higher. But it is still a drag on accumulation, and buyers who never activate the income feature still pay it.

The less obvious tradeoffs are structural. The fixed rate, while predictable, may lag what an indexed annuity could credit in strong market years. The MVA adds another layer of cost on early withdrawals above the free amount. And the 7-year commitment, while standard, means this is not a short-term parking spot for cash.

Nationwide Stable Income is issued by Nationwide Life and Annuity Insurance Company, a subsidiary of Nationwide Mutual Insurance Company. Nationwide is a Fortune 100 mutual company founded in 1926 and headquartered in Columbus, Ohio. The company carries ratings of A+ from S&P, A+ from AM Best, and A1 from Moody's, with $322.3 billion in total assets. Nationwide's mutual structure means it is owned by its policyholders rather than public shareholders, which aligns the company's interests with long-term obligations.