Nationwide New Heights 10 Fixed Index Annuity Review: Independent Analysis (2026)

The Nationwide New Heights 10 is a fixed index annuity (FIA) with a 10-year surrender period, index-linked growth potential, and an optional income rider for guaranteed lifetime income. It is one of the top-selling FIAs in the U.S. market. This independent review covers the crediting strategies, income rider mechanics, fees, surrender charges, and who this product is actually right for — without sales bias.

Last updated: May 2026 | Not a solicitation to buy or sell annuities | Consult a licensed fiduciary advisor before purchasing.

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Nationwide New Heights 10 at a Glance

Feature	Detail
Product type	Fixed Index Annuity (FIA)
Carrier	Nationwide Life and Annuity Insurance Company
A.M. Best rating	A+ (Superior)
Surrender period	10 years
Surrender charges	10% Year 1, declining to 0% after Year 10
Minimum premium	$10,000
Issue ages	0–80 (varies by state)
Index options	S&P 500, MSCI EAFE, JPMorgan Mosaic Index, Nationwide Peak 10 Index
Income rider	New Heights Income Rider (optional, fee-based)
Free withdrawal	10% of accumulation value annually after Year 1

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How the New Heights 10 Works

The New Heights 10 credits interest based on the performance of one or more stock market indexes — but your principal is fully protected from market losses. This is the core FIA trade-off: you give up direct market participation for downside protection, with gains capped at the contract's participation rate or cap rate.

Crediting methods available:

• Annual point-to-point with cap: Interest credited based on index gain up to a defined cap rate (rates change annually based on market conditions)
• Annual point-to-point with participation rate: You receive a defined percentage of index gains with no cap
• Monthly average: Averages 12 monthly index readings to smooth volatility

Current cap rates and participation rates are declared annually by Nationwide and are not guaranteed beyond the current contract year. As of 2026, FIA cap rates across the industry have declined from 2021–2022 peaks as interest rates have shifted.

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The Income Rider: New Heights Income Rider

The optional income rider is what most buyers purchase this product for. Key mechanics:

• Income base growth: The income base grows at a declared rate (typically 6–8% simple or compound — confirm current rate with carrier at time of purchase) for each year you defer withdrawals
• Withdrawal rate: At income activation, you receive a percentage of the income base as an annual payment for life (rates tied to your age at activation)
• Rider fee: Approximately 0.95–1.10% of the income base annually (charged against accumulation value, confirm current fee)
• Joint income: Available for spouses, typically at a reduced payout rate

Important distinction: The income base is NOT the same as your account value. If you surrender the contract, you receive the accumulation value (index-linked gains minus fees and surrender charges), not the income base. The income base only determines the size of your guaranteed income payments.

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Pros and Cons

Pros:

• Principal protection — zero loss floor means market downturns don't reduce your premium
• Nationwide's A+ (Superior) A.M. Best rating is among the strongest in the industry
• Tax-deferred growth — no annual tax on interest credited until withdrawal
• Flexible index options, including proprietary indexes designed to reduce cap drag
• Income rider provides truly guaranteed lifetime income regardless of market performance
• Annual free withdrawal of 10% (after Year 1) provides some liquidity

Cons:

• 10-year surrender period is long — among the longest in the standard FIA market
• Surrender charges are steep (10% in Year 1) — this is an illiquid commitment
• Cap rates and participation rates are not guaranteed after the first contract year
• The income rider fee (approximately 1%/year) reduces accumulation value
• Proprietary indexes (Nationwide Peak 10) have limited independent performance history
• Complex product — many buyers don't fully understand income base vs. accumulation value

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How It Compares to Similar Products

Product	Surrender Period	Income Rider Fee	A.M. Best	Key Differentiator
Nationwide New Heights 10	10 years	~0.95–1.10%	A+	Strong carrier, flexible indexes
Athene Agility 10	10 years	~1.00%	A	Competitive crediting strategies
Allianz 222	10 years	~1.10%	A+	22% income base bonus at activation
American Equity AssetShield	10 years	~1.00%	A-	Performance+ index track record
Jackson National Perspective II	7 years (variable)	~1.30%	A+	Variable annuity with rider (different risk)

For a full comparison of the Athene Agility 10 — a direct competitor — see our Athene Agility 10 review. For broader context on how FIAs work before evaluating any specific product, our complete guide to fixed index annuities covers the mechanics in depth. And for those still deciding whether any annuity fits their plan, our annuities for retirement income guide provides a full framework.

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Who the New Heights 10 Is Best For

The Nationwide New Heights 10 is best suited for:

• Pre-retirees (ages 55–70) with a 10+ year horizon before needing income
• Investors with excess cash in CDs, money markets, or conservative bonds who want higher growth potential with principal protection
• Retirees who want guaranteed lifetime income and are concerned about outliving their savings
• Those seeking tax-deferred accumulation outside of IRA contribution limits

Who should avoid it:

• Anyone who may need full access to their money within 10 years
• Investors who want direct market participation and are comfortable with downside risk
• Those under 50 with a long investment horizon who have better options through tax-advantaged accounts
• Buyers who don't understand how income base mechanics work — complexity risk is real

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Key Questions to Ask Before Buying

1. What is the current cap rate and participation rate — and how have they changed in the last 3 years?
2. What is the income base growth rate on the income rider as of today?
3. What is the exact rider fee, and is it taken from accumulation value or income base?
4. What is my break-even point — at what age do guaranteed income payments exceed what I'd have earned in a CD ladder?
5. Is the agent selling this product a fiduciary, and are they comparing this to competing products?

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Frequently Asked Questions

Is the Nationwide New Heights 10 a good annuity?
For the right buyer — a pre-retiree with a long deferral period and a need for guaranteed income — it is a well-structured product from a top-rated carrier. For buyers who need liquidity, shorter time horizons, or direct market participation, better options exist.

What are the surrender charges on the New Heights 10?
Surrender charges start at 10% in Year 1 and decline annually, reaching 0% after the 10-year surrender period. Free withdrawals of 10% of accumulation value are available annually after the first contract year without surrender charges.

How is interest credited on the New Heights 10?
Interest is credited based on the performance of a selected stock market index (S&P 500, MSCI EAFE, Nationwide Peak 10, or JPMorgan Mosaic), subject to a cap rate or participation rate that Nationwide declares annually. Your principal is guaranteed against negative index returns.

Can I lose money with the New Heights 10?
Your principal is protected from market losses — you cannot lose your original premium due to index performance. However, you could receive 0% interest in years when the index declines or is flat. The rider fee also reduces accumulation value each year the rider is active.

What is the income rider payout rate?
Payout rates vary by age at income activation and joint vs. single life election. Current rates must be confirmed with Nationwide directly at time of purchase — they are subject to change. Typically, activation at age 65 on a single-life basis yields a higher payout percentage than joint-life at 60.

Is Nationwide a safe company for an annuity?
Yes — Nationwide holds an A+ (Superior) rating from A.M. Best, one of the highest in the industry. State guaranty associations provide an additional backstop (coverage limits vary by state, typically $250,000). For retirees placing large sums in annuities, spreading across multiple carriers is a prudent strategy.

How does the New Heights 10 compare to a CD or MYGA?
A CD or MYGA (Multi-Year Guaranteed Annuity) offers a guaranteed, fixed interest rate with no market linkage — simpler and more transparent. The New Heights 10 offers the potential for higher returns (uncapped in participation rate strategies) at the cost of complexity and a longer surrender period. For retirees who primarily want guaranteed growth without complexity, a MYGA is often a better comparison point than another FIA.

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Disclaimer: This review is for informational purposes only. It does not constitute a recommendation to purchase or avoid any annuity product. Annuity contracts are complex insurance products. All product features, fees, and rates described are based on publicly available information and may have changed since publication. Always obtain a current illustration and review the full contract before purchasing. Consult a licensed, independent fiduciary advisor for personalized guidance.

Author: RetirementRescue Editorial Team — independent annuity analysts, updated May 2026.