Why Upgrade
The annuity market today is not the one you bought into.
Interest rates, product design, and consumer protections have all changed. Most contracts sold before 2020 leave significant lifetime income on the table.
Old contract vs. modern contract
| Feature | Old contract | Modern contract |
|---|---|---|
| Average cap rate | 3–5% | 8–12% |
| Annual internal fees | 2.5–4% | 0.5–1% |
| Income rider terms | Outdated formulas | Modernized roll-up |
| Surrender period flexibility | Long, restrictive | Shorter, transparent |
| Death benefit options | Limited | Enhanced & customizable |
| Tax to switch | — | $0 via 1035 |
Rate environment shifted
Carriers price contracts based on the bond yields available when you bought. The yield curve today supports significantly higher participation rates and caps.
Fee compression
Competitive pressure has stripped out layered M&E fees and hidden subaccount expenses common in pre-2020 variable annuities.
Better income guarantees
New income riders use updated mortality tables and roll-up rates that often translate to 20–40% more lifetime income.
See what this means in your numbers.
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