Categories
Review 2026
BestGuide Score
4.1
out of 5
Based on our analysis, Fidelity earns an Expert Score of 4.1/5.0, making it a strong option for investors seeking low-cost variable annuities. Its standout product, the Fidelity Personal Retirement Annuity, features an annual fee as low as 0.10% and has no surrender charges, which is a significant advantage over many competitors.
Fidelity earns an Expert Score of 4.1/5.0 from BestGuide, placing it as a competitive choice in the annuities marketplace, particularly for its low-cost variable annuity product. This Fidelity review finds the company’s primary strengths are its strong brand reputation, the high financial strength of its insurance carriers (all holding an A-range A.M. Best rating), and the exceptionally low fees on its flagship variable annuity.
While many Fidelity reviews praise its convenience, especially for existing customers, our analysis identifies a key limitation: a narrower selection of annuity products compared to specialized insurance companies. We found that while Fidelity offers core annuity types like fixed, variable, and indexed, investors seeking the highest possible fixed annuity rates or a wider array of carriers may find more suitable options elsewhere. The company functions more as a distributor than a primary issuer for many products, offering a curated selection from third parties alongside its own.
Compare Fidelity with other top-rated annuities companies to see how it stacks up.
Fidelity provides access to annuity contracts designed for long-term retirement savings and income. As a financial services firm, it acts as a distributor for products issued by its own subsidiary, Fidelity Investments Life Insurance Company (FILI), and other third-party insurance companies. This gives you a single point of access to multiple carriers.
Your first step is to determine the right type of annuity for your financial goals. Fidelity offers several options. A fixed annuity, specifically a Multi-Year Guaranteed Annuity (MYGA), provides a guaranteed interest rate for a set period, typically 3 to 10 years. A fixed index annuity offers growth potential linked to a market index, like the S&P 500, with protection against downside market risk. A variable annuity allows you to invest in a range of underlying funds, offering higher growth potential but also carrying market risk.
Fidelity’s flagship variable annuity, the FPRA, requires a minimum investment of $10,000. It is known for its low costs, with an annual contract fee of 0.25% on assets up to $1 million and 0.10% on assets above that threshold. Unlike many competitors, this product does not have surrender charges for early withdrawals, offering greater liquidity. However, withdrawals before age 59.5 are still subject to a 10% IRS penalty.
Once you select a product, you fund the annuity with a lump sum or through transfers from other retirement accounts. All earnings within the annuity grow tax-deferred, meaning you don’t pay taxes on the growth until you begin taking withdrawals. The process can be completed online or with the assistance of a Fidelity representative, aligning with its reputation for convenience.
Fidelity annuities are best for existing Fidelity customers who value the convenience of managing their investments and retirement products under one roof. It is also an excellent choice for cost-conscious investors interested in a variable annuity, as the Fidelity Personal Retirement Annuity (FPRA) offers annual fees as low as 0.10% and no surrender charges. Investors looking for a straightforward way to access products from A-rated insurance carriers without dealing with multiple agents will find Fidelity’s platform efficient.
However, Fidelity is not ideal for individuals seeking the absolute highest fixed annuity rates available in the market. Research shows its guaranteed rates on fixed products are often lower than those offered by more specialized insurance carriers. It is also not the right fit for someone who wants the widest possible selection of annuity products and riders, as its offerings are more limited than a dedicated annuity marketplace.
Fidelity distinguishes itself in the crowded annuity market through a few key features that cater to its core client base. Our analysis highlights the following as its most compelling attributes.
Low-Cost Variable Annuity
The Fidelity Personal Retirement Annuity (FPRA) is a primary differentiator. Its annual fee structure, 0.25% for assets under $1 million and 0.10% for assets over $1 million, is significantly lower than the industry average for variable annuities, which can often exceed 1.0%. Furthermore, the complete absence of surrender charges provides a level of liquidity rarely seen in these products.
High-Quality Insurance Carriers
Fidelity ensures that all annuity products it offers, whether its own or from third parties, are backed by financially strong insurance companies. According to our research, every issuing carrier holds an A-range financial strength rating from A.M. Best. This provides a high degree of confidence that the insurer will be able to meet its long-term obligations to policyholders.
Integrated Digital Platform
For the millions of existing Fidelity clients, the ability to purchase and monitor an annuity within the same online dashboard as their 401(k), IRA, and brokerage accounts is a major advantage. This integration simplifies financial planning and portfolio management, a key reason Forbes Advisor named Fidelity the best annuity company for convenience.
| Pros | Cons |
|---|---|
| Low Variable Annuity Fees: The FPRA has an annual fee as low as 0.10% for balances over $1 million, well below the industry average. | Limited Product Selection: Offers fewer annuity options compared to the broader market of hundreds of specialized insurance carriers. |
| No Surrender Charges (FPRA): Fidelity’s flagship variable annuity imposes no early withdrawal penalties, a rare feature in the industry. | Uncompetitive Fixed Rates: Fixed annuity rates offered through Fidelity are often lower than the top rates available directly from other insurers. |
| Strong Carrier Financials: All annuities are backed by insurance carriers that hold an A-range financial strength rating from A.M. Best. | Third-Party Service Issues: Some customers report service problems with third-party annuity providers purchased through the Fidelity platform. |
Yes, Fidelity is a legitimate and highly reputable financial services corporation. Founded in 1946, it is one of the largest asset managers in the world, with trillions of dollars in assets under management. Its long history and massive scale provide a strong foundation of trust and stability for its customers.
The annuities sold by Fidelity are legitimate insurance contracts issued by established and financially sound insurance companies. This includes products from its own subsidiary, Fidelity Investments Life Insurance Company (FILI), as well as other well-known carriers like MassMutual and Global Atlantic. Crucially, all of these partner carriers possess an A-range rating for financial strength from A.M. Best, indicating a strong ability to pay future claims.
The BestGuide expert panel awards Fidelity an Expert Score of 4.1 out of 5.0. This score is the result of a comprehensive evaluation across five key criteria based on our proprietary methodology. The rating places Fidelity in the upper tier of annuity providers we review, slightly above the industry average of 4.0.
Fidelity’s score is driven by high marks in Reputation (85/100) and Scalability (90/100), reflecting its massive national presence and strong financial backing. Its lowest-scoring criterion was Transparency (75/100). While Fidelity is clear about the fees for its flagship FPRA product, the complex nature of annuities and the variable fee structures of its third-party offerings mean that a complete cost picture is not always immediately apparent without deeper consultation.
What this means for you: A 4.1 score signifies a reliable provider with a standout product (the FPRA) and strong financial stability. However, the slightly lower score in transparency suggests you should carefully review all contract details and fee schedules, especially for non-Fidelity branded products, before investing.
The cost of a Fidelity annuity varies significantly depending on the product type. The most transparently priced product is the Fidelity Personal Retirement Annuity (FPRA), a variable annuity. Its costs are broken down into two parts, as detailed below. This fee structure is considered low compared to the annuity industry average.
| Fee Type | Cost |
|---|---|
| Annual Annuity Fee | 0.25% for assets under $1 million; 0.10% for assets over $1 million |
| Underlying Fund Expenses | Ranges from 0.10% to 2.07%, depending on the funds chosen |
For other products like deferred fixed annuities, there are no explicit annual fees. Instead, the cost is factored into the interest rate offered. These products, however, often come with surrender charges if you withdraw more than a specified amount during the initial guarantee period. These charges can be as high as 7% in the first year and typically decrease to 0% over a period of 7 to 10 years.
Fidelity earns an Expert Score of 4.1/5.0, cementing its status as a strong contender in the annuity space, particularly for a specific type of investor. Its greatest strength is the Fidelity Personal Retirement Annuity (FPRA), which offers some of the lowest annual fees in the variable annuity market (as low as 0.10%) and no surrender charges. This, combined with the convenience for existing Fidelity customers and the assurance of A-rated insurance carriers, makes it a compelling option.
However, our Fidelity review also confirms that it is not a universal solution. The company’s primary weaknesses are a curated, and therefore limited, selection of annuity products and fixed annuity rates that are frequently less competitive than those from specialized insurers. Investors whose top priority is maximizing guaranteed returns on a fixed annuity or exploring the widest possible market of options should look elsewhere. In summary, Fidelity is an excellent choice for low-cost variable annuities and platform convenience, but less so for comparison shoppers hunting for the highest rates.
See our full Buyers Guide for the best annuities companies before making your decision.
What do experts say about Fidelity annuities?
Experts on the BestGuide panel award Fidelity an Expert Score of 4.1/5.0. They highlight the low costs of its flagship variable annuity, which has annual fees as low as 0.10% and no surrender charges, but note its more limited product selection compared to specialized insurance carriers.
Are Fidelity annuities worth it in 2026?
Yes, for specific investors. They are particularly worthwhile for existing Fidelity customers seeking convenience and for those focused on a low-cost variable annuity. The Fidelity Personal Retirement Annuity, with its 0.10%-0.25% annual fee, remains a highly competitive product.
How do Fidelity’s annuity offerings compare to other providers?
Fidelity’s offerings are less extensive than those from large insurance companies like New York Life or Allianz. However, its variable annuity fees are generally lower than the industry average. Fidelity acts as a quality-focused distributor rather than a comprehensive marketplace.
What are the fees associated with Fidelity annuities?
Fees vary by product. The Fidelity Personal Retirement Annuity has an annual fee of 0.10% to 0.25% plus underlying fund expenses. Other fixed annuities have no direct fees but may impose surrender charges for early withdrawals, which can start as high as 7% in the first year.
Are Fidelity annuities any good?
Yes, they are considered good products backed by financially strong, A-rated insurance carriers. They are particularly good for investors prioritizing low fees in a variable annuity and the convenience of an integrated financial platform.
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