Is the Nationwide Peak 10 a good annuity?
It is a strong choice for an income buyer willing to accept a long surrender period and a rider fee in exchange for one of the largest guaranteed bonuses in its category. A $100,000 deposit becomes a $125,000 income base on day one under the Bonus Income+ Rider, and an 8% simple roll-up adds a further $10,000 a year to that base for up to a decade, all without needing a single dollar of index credit. Add an A+ rating from Nationwide and a step-up feature that lets strong index years push income even higher, and the guaranteed case is real. What gives us pause is a 10-year surrender period with a steep charge in the first two years, a 1% annual rider fee taken from your actual account value, and a headline crediting index with a short live history. For a patient, income-focused buyer who will use the rider as intended, it earns its place on a short list.
Nationwide Peak 10 at a glance
| Product type | Fixed index annuity |
|---|---|
| Issuing carrier | Nationwide Life and Annuity Insurance Company |
| AM Best rating | A+ (Superior) |
| Surrender period | 10 years |
| Maximum issue age | 85 for the annuitant, single or joint; no maximum for the owner |
| Free withdrawals | 10% of contract value a year; required minimum distributions are always free, even above 10% |
| Optional income rider | Bonus Income+ Rider, 1.00% annual fee, maximum 1.20% |
| Income base bonus | 25% at issue; a $100,000 premium becomes a $125,000 income base immediately |
| Roll-up rate | 8% simple interest a year, for up to 10 years from issue |
| Market value adjustment | Applies to surrenders and excess withdrawals in the first 10 years |
| Eligible funds | Traditional IRA, IRA rollover, 401(k), non-qualified money and 1035 exchanges |
Today's rates for Nationwide Peak 10
Rates change often and vary by state, term and deposit size. Get today's numbers for your state, side by side with other top-rated carriers. Free, with no obligation.
What is the Nationwide Peak 10?
The Nationwide Peak 10 is a fixed index annuity built with an income buyer in mind. Its optional rider adds a 25% bonus straight to the income calculation base the moment you fund the contract, then keeps adding 8% of that starting amount every year, as simple interest, for up to a decade. Layered on top, one of the two crediting strategies available carries a notably high participation rate, giving the actual account value real growth potential alongside the guaranteed income math.
None of that comes free. The contract runs a 10-year surrender schedule, the rider carries an ongoing fee taken from your account value, and the strategy driving most of the growth potential has only been trading for a few years in real markets. This review walks through exactly how the bonus and roll-up build your guaranteed income, what the surrender terms cost you, and who this contract makes the most sense for.
Is Nationwide a good annuity company?
Nationwide Life and Annuity Insurance Company operates as part of Nationwide Mutual, one of the larger insurance and financial services groups in the country. AM Best currently rates it A+ (Superior), the second-highest grade on that agency's scale, reflecting strong long-term financial stability.
Because every guarantee in this contract rests on the issuing carrier's ability to pay claims decades from now, Nationwide's size and rating matter as much as any feature described below. For the full picture on ownership, history and the rest of its lineup, see our complete Nationwide company review.
How the index crediting strategies work
Peak 10 illustrations typically split a deposit evenly between two crediting strategies, one built for higher growth potential and one built for predictability.
The growth-oriented option is the BNP Paribas Global H-Factor, a proprietary index that blends multiple factors and manages its own volatility, crediting interest once every two years based on the index's move multiplied by a participation rate, minus a small spread. If the index finishes the two-year period flat or negative, this strategy credits zero, never a loss. The index launched in April 2022, so its real trading history is still relatively short next to benchmarks that have traded for decades.
The steadier option runs on the S&P 500, crediting annually up to a stated cap and crediting nothing in a down year. Because participation rates, spreads and caps on both strategies reset periodically and vary by state and allocation, we do not publish current numbers here. Ask your strategist for what is available today, or see our guide to FIA crediting methods for how caps, participation rates and spreads interact.
Why we do not publish the backtested performance numbers
Sales illustrations for the Peak 10 typically include tables projecting how the 50/50 blend of strategies would have performed over various historical stretches, often citing an especially strong period, a weak period and the most recent decade. Because the BNP Paribas Global H-Factor only began real trading in April 2022, any year shown before that date in one of these tables is a backtest, a model's calculation of what the index would have produced had it existed, not a record of real money actually invested. Backtested figures are also prone to overstating real-world results, since they are built and calibrated with the benefit of hindsight and often understate trading costs and rebalancing drag.
None of the guaranteed income math in this review depends on those backtested charts. The bonus and the roll-up are contractual guarantees that do not care what any index does. Treat any accumulation projection built on the BNP Paribas strategy's pre-2022 history as a sales exhibit worth questioning, not a forecast worth planning around, and ask specifically for the strategy's live results since 2022 if growth potential matters to your decision.
The Bonus Income+ Rider, step by step
The Bonus Income+ Rider is an optional lifetime income rider, and it is the main reason most buyers choose this contract. Because the bonus and the roll-up are both guaranteed contract terms rather than index-dependent credits, we can walk through the exact arithmetic on a $100,000 deposit for a 60-year-old buyer.
| Step | What happens | Running income base |
|---|---|---|
| At issue | 25% bonus credited immediately | $125,000 |
| Years 1 through 5 | 8% simple interest a year on the original bonused base, $10,000 a year | $175,000 by year 5 |
| At age 65 (year 5) | Nationwide applies its stated payout percentage, a little above 6%, to the base | About $10,900 to $11,000 a year for life |
The rider charges a 1.00% annual fee (maximum 1.20%) taken from the actual account value each quarter, not from the income base, so the fee's dollar cost does not grow the way it would on a rider that charges against the base itself. A built-in step-up feature also means that if your actual account value ever exceeds the income base on a contract anniversary, thanks to strong index credits, the income base steps up to match it, which can raise your eventual income above what the bonus and roll-up alone would produce. Eligibility for the rider runs from age 45 to 85 at issue, and income can start as early as 45 if needed.
Income base and account value are not the same number
This distinction trips up more buyers than almost anything else in an income rider, so it is worth stating plainly:
- Your account value is the real money you own. It grows with whatever the index strategies credit, shrinks with any withdrawal, and is reduced each quarter by the 1% rider fee. This is the number you would actually receive on a full surrender.
- Your income benefit base exists only to calculate your guaranteed lifetime payment. It opens at $125,000 on a $100,000 deposit and climbs by $10,000 a year during deferral. You cannot surrender it, and it does not pass to heirs as a lump sum; it only determines how large your income checks are once you turn them on.
The 25% bonus and the 8% roll-up both apply to this income base, never to the account value directly. That is standard across the income rider industry, but it is worth understanding clearly before you buy.
Surrender schedule
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Surrender charge | 10% | 10% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% |
A market value adjustment also applies during the first 10 years on top of any surrender charge. When interest rates have risen since you bought the contract, the adjustment works against you; when rates have fallen, it works in your favor. Nationwide waives both the surrender charge and the market value adjustment in cases of death, terminal illness or a qualifying confinement. Required minimum distributions are always penalty-free, even when they exceed the standard 10% free withdrawal allowance, which matters for IRA owners in particular.
Who is the Nationwide Peak 10 best for?
This contract is built specifically for buyers who value guaranteed lifetime income over pure accumulation. It tends to fit well for someone who:
- Falls roughly in the 55 to 75 age range and has somewhere from $75,000 up to $500,000 available to commit
- Wants the income base to grow as fast as possible during a 5 to 10 year deferral window
- Values a large upfront bonus and a meaningful guaranteed roll-up over a slightly higher payout percentage
- Plans to use this primarily as a retirement income tool rather than as a growth vehicle
- Is comfortable with a full 10-year commitment and understands the difference between income base and account value
If accumulation matters more to you than guaranteed income, a fee-free fixed index annuity focused purely on growth is likely to serve you better. If you want income but a shorter commitment, ask your strategist to compare shorter-surrender income options as well.
How to buy a Nationwide Peak 10
Nationwide sells the Peak 10 exclusively through licensed insurance agents and advisors; there is no direct-to-consumer path. A licensed strategist can run a personalized illustration showing your projected income, accumulation and current crediting terms based on your age, state and premium, and you can explore your own scenarios first using our annuity calculators.
Other income annuities to consider
If the Nationwide Peak 10 is on your list, these are worth pricing alongside it:
- Nationwide New Heights Select 9: a sister contract from the same carrier built around a 30% bonus and a compounding guaranteed roll-up instead of a simple one
- Nationwide: the full carrier profile, ownership history and product lineup
- Understanding GLWB income riders: a plain-English guide to how guaranteed lifetime withdrawal benefit riders work across carriers
Pros and cons
Pros
- AM Best rates Nationwide A+ (Superior), the second-highest tier on its scale
- A 25% income base bonus at issue is among the largest offered on a standard FIA
- An 8% simple annual roll-up builds the guaranteed income base quickly during deferral
- The step-up feature lets the income base rise further if account value performance outpaces the guaranteed schedule
- One index strategy carries a notably high participation rate, giving the underlying account value real upside potential alongside the guaranteed rider math
- Illustrated account values in Nationwide's own materials often remain well into six figures even decades into the withdrawal phase
- Income can begin as early as age 45 for buyers who need it sooner
- Required minimum distributions are always penalty-free, no matter the amount
Cons
- A decade-long surrender schedule that opens at a 10% charge for both of the first two contract years, a combination on the longer, steeper end of what we see in this category
- The headline index strategy launched in April 2022, so any performance shown for years before that date is a model's estimate, not a record of real results
- The 1.00% annual rider fee comes out of your actual account value, not the income base, which slows real accumulation over time
- The 25% bonus and the roll-up both apply to the income base only; neither can be withdrawn as a lump sum or left to heirs
- The payout percentage at age 65 runs a bit below some competing income riders
- A market value adjustment can reduce what you receive if you surrender while rates have moved against you
- Not sold in every state
Frequently asked questions
What is the Nationwide Peak 10?
It is a 10-year fixed index annuity from Nationwide Life and Annuity Insurance Company, an A+ rated carrier. Its main draw is the optional Bonus Income+ Rider, which adds a 25% bonus to the income base at issue and then grows that base by 8% simple interest a year for up to a decade.
How does the 25% income base bonus work?
Electing the Bonus Income+ Rider adds 25% to your income benefit base, a calculation number separate from your actual account value, right when the contract is issued. On a $100,000 premium, that puts the income base at $125,000 immediately. This larger base is what Nationwide multiplies by your payout percentage to size your guaranteed lifetime income.
How does the 8% roll-up actually add up?
During deferral, before you turn on income, the base grows by 8% of the original bonused amount every year, added as simple interest rather than compounding. On a $125,000 starting base that means $10,000 a year. Carry that for a full 10 years and a $100,000 premium turns into a $225,000 income base, made up of the $125,000 starting point plus $100,000 in roll-up credits.
Can the account value go down?
A crediting period that finishes at or below zero simply credits nothing, so index losses never reduce your principal directly. The 1% annual rider fee is a different story: it comes out of the account value every quarter regardless of index performance, so a run of flat years can still leave the account value a bit lower than where it started. Surrender charges and a market value adjustment can also reduce what you receive if you withdraw more than the free amount early.
How does this compare to other bonus-and-rollup income riders on the market?
Nationwide's 25% bonus sits at the high end for this category, and the 8% roll-up builds the base quickly during deferral. Some competing riders offer a somewhat higher payout percentage at age 65 in exchange for a smaller bonus or a lower roll-up rate. Which one produces more guaranteed dollars depends on your age, deposit size and how long you plan to defer, so compare a personalized illustration of each before deciding.
Written and reviewed by
James Forren Warren
Licensed Retirement Income Strategist · License #20551202
James Forren Warren is a licensed Retirement Income Strategist with Tax Free Wealth Plan. For the past five years he has helped individuals and families turn their savings into retirement income they can count on. He writes and reviews the annuity research on this site and keeps it plain: what a product does, what it costs you, and who it actually fits.
Sources
Educational only, not investment, tax or legal advice. Tax Free Wealth Plan LLC is a licensed insurance agency, not a registered investment adviser or broker-dealer. Annuities are not bank deposits, are not FDIC insured and are not guaranteed by any government agency. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Features, rates and availability vary by state and change over time; the contract and disclosure documents govern.
