Fidelity Annuity Review

I hope no one misunderstood me a couple of weeks ago when I pointed out that major investment firms like Fidelity are now recommending annuities. Those companies have always had access to annuities but typically only used them as a last resort. Higher rates make the benefits more obvious and I think it’s good that we are a little closer to a consensus because it will make things easier for you. In short, I applaud Fidelity’s willingness to make insurance products a bigger part of their retirement planning strategies.

As mentioned before, I’ve talked to several people in the past few months who have had similar experiences with Fidelity so I’m gonna share some numbers this week to show how I compete to give everyone the best deal. This is a quick and easy example with just a few things that need to be explained first. Fidelity will have limited annuity options because of the corporate structure of the company. Sometimes it will be the best option and other times it won’t. That’s why you need to shop around so you can get the most for your money.

Immediate income annuities pay within one year and deferred income annuities offer income that can be delayed for several years. Fidelity will be more competitive in immediate income situations but their limited selection has not been very competitive for deferred income. One person told me recently that she purchased an annuity from Fidelity and was wondering if she should have done more research to find a better deal. It is not worth second guessing yourself in that case because Fidelity will always give you a contract from a very strong insurance company.

The case I’m sharing today has to do with deferred income. A couple in their early 60s wanted to set aside some money to generate income in five years. I shopped the market and came up with the best product in very short order. They wanted a baseline income of $1500 per month and I found that Midland National could do it for $196,000. Fidelity offered two recommendations, one from Guardian Life and another from Integrity Life. Both are excellent companies. I started my career as a Guardian agent and have used Integrity for income cases in the past. My search for the best annuity deal included both of those companies and I had already found them to not be in the ballpark.

Either of the other two companies would have charged about $233,000 for the same income stream. We were able to use Midland and save the couple over $37K which is not a small difference. It’s about 16% cost savings and to be able to still get an A+ company makes it an easy decision. I’m going to go into much greater detail in the podcast and even share the quotes from each company. There’s a fair bit of difference between the types of contracts but the bottom line is the guaranteed income.

This is often but will not always be the case. I can usually beat the income quotes from Fidelity and I can sell products from any of the annuity companies they use. That doesn’t mean everyone has to do business here but saving money on retirement income should be important to everyone. At the very least shop around a bit. Even if all you do is confirm that you already have the best option you’ll still be able to make the commitment with more confidence.

Get a free second opinion on an annuity you were pitched

Fidelity Annuity Review: Strengths and Weaknesses

Fidelity is not a bad place to start an annuity search. That needs to be said first. The company works with strong insurance carriers, and anyone who buys an annuity through Fidelity is likely getting a contract from a financially solid company. For someone who wants a familiar name, a simple process, and a conservative recommendation, that has value.

The weakness is not safety. The weakness is selection.

Fidelity has a limited annuity shelf because of how the company is structured. That means the recommendation may be suitable, but it may not be the best quote available in the open market. That matters most when you are buying income. A small difference in monthly payout or purchase cost can turn into a large dollar amount over retirement.

In the case I reviewed here, Fidelity’s recommended carriers were both excellent companies. I had no objection to Guardian or Integrity. The problem was that another A+ carrier could provide the same $1,500 monthly income for about $37,000 less. Same income goal. Strong company. Lower cost.

That’s the point. Fidelity can be a good option. It just should not be the only quote you compare.

How Fidelity Annuities Compare to Shopping the Full Market

When you compare Fidelity annuities to the full market, the question is not whether Fidelity is reputable. It is. The real question is whether the recommendation is the best fit for your exact income need, timeline, and amount of money.

A captive or limited platform can only show what is available on that platform. An independent search can compare more carriers, more contract types, and more income designs. Sometimes Fidelity will be competitive. Sometimes it will not. You don’t know until you compare apples to apples.

The case in this article is a good example. The couple wanted income to start in five years. Fidelity recommended two respected carriers. I had already reviewed those same companies and found that neither was close to the best quote. Midland National could provide the target income with about $196,000. The Fidelity options were around $233,000 for the same income stream.

That does not make Fidelity wrong. It means the market had a better answer.

If you are looking at a Fidelity annuity, get the quote in writing. Then compare the same premium, start date, income amount, survivor option, and carrier rating against the broader market. That is the only fair way to know whether you are getting a good deal.

Fidelity Annuity Rates: Why the Quote Matters More Than the Brand

Annuity rates change, so I don’t like making a permanent article out of a temporary number. A rate that looks great today may be gone next week, and an income quote depends on your age, state, deposit amount, start date, and whether payments continue for one life or two.

That’s why the quote matters more than the brand name on the brochure.

For fixed annuities and MYGAs, the comparison is fairly simple: rate, term, carrier rating, surrender schedule, and liquidity. For income annuities, the comparison is different. You are looking at how much premium it takes to buy a specific monthly income. A lower purchase cost for the same income can be a better deal than a familiar company name.

In this example, the income goal was $1,500 per month beginning in five years. Fidelity’s options were from excellent companies, but the cost was roughly $233,000. The better quote I found was about $196,000. That difference was not a rounding error. It was about $37,000.

If Fidelity gives you a rate or income recommendation, use it as a baseline. Then shop the same facts across the market before you sign anything.

Check out the podcast for more details…

Bryan

Continue Reading:

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FAQ

Does Fidelity offer annuities?

Yes. Fidelity offers annuities through its annuity platform and insurance network, using contracts from outside insurance companies. The important point is that Fidelity is often the distributor, while the insurance company behind the contract is responsible for the guarantees.

Are Fidelity annuity rates competitive?

Sometimes they are, and sometimes they are not. Fidelity can offer strong carriers, but its annuity shelf is limited, so it is smart to compare the same premium, term, income start date, and payout option against the broader market.

Is Fidelity a good place to buy an annuity?

Fidelity can be a reasonable place to start because it is a reputable firm and generally works with strong insurance companies. The risk is assuming the first suitable recommendation is the best available quote. Get the details in writing and compare before you commit.

How do Fidelity annuities compare to other providers?

The comparison depends on the type of annuity and the goal. For immediate income, Fidelity may be competitive. For deferred income or fixed indexed annuity strategies, an independent market search may find more options and, in some cases, a meaningfully better income quote.

Should I get a second opinion on a Fidelity annuity recommendation?

Yes, especially if the annuity is being used for retirement income. A second opinion should compare carrier strength, income amount, surrender terms, fees, liquidity, and the cost required to produce the same monthly income.

Last Updated on July 24, 2026 by Bryan Anderson