The Complete Guide to Fixed Annuity Maturity & Renewal
Every year, billions of dollars in multi-year guaranteed annuities (MYGAs) reach maturity — and the vast majority of policyholders do nothing. When a fixed annuity matures, your carrier gives you a short window to move your money before automatically renewing it at a default renewal rate that is often far below the best rates available on the open market. Understanding how the maturity process works — and planning ahead — can save you thousands of dollars in foregone interest over the life of your contract.
The Auto-Renewal Trap
Default renewal rates are often 1–2% below market. On $250,000, that's $7,500+ lost per year.
A Narrow Window
Most carriers give you 30–60 days after maturity to move funds penalty-free. Miss it and you're locked in.
The 1035 Exchange
Transfer to a new carrier tax-free using a 1035 exchange — no taxes, no penalties, no hassle.
What Is a MYGA Maturity Date?
Your MYGA maturity date is the day your guaranteed interest rate term ends and your surrender period expires. For a 5-year MYGA purchased in 2021, that date falls in 2026. Until that date, your rate is locked and early withdrawals above your 10% free-withdrawal allowance incur surrender charges. After that date, you regain full access to your funds — and the carrier's obligation to pay your guaranteed rate ends. This is your opportunity to shop the market and secure the best available rate for the next term.
Why Default Renewal Rates Cost You Money
Insurance carriers profit when policyholders auto-renew. The default renewal rate is set by the carrier and is typically 1–2% below the best rates available from competing A-rated carriers. Because most annuity owners don't track their maturity date or compare rates, carriers retain billions in assets at below-market yields. The Annuital Maturity Tracker is built to change that: we monitor your date, send you proactive reminders, and show you the best competing rates in your state — so you can renew on your terms, not your carrier's.
How to Renew Your Annuity the Smart Way
The renewal process is straightforward when you plan ahead:
- Confirm your maturity date — check your contract or annual statement.
- Compare current rates — browse the Annuital marketplace for live rates in your state.
- Choose a new product — select a term (3, 5, or 7 years) and carrier that fits your goals.
- Apply online — complete the application in minutes; no broker required.
- Execute a 1035 exchange — transfer funds tax-free from your old contract to the new one.
By starting 90 days before maturity, you give yourself time to complete every step without pressure — and lock in the best rate before your renewal window closes.
MYGA Renewal vs. Moving to a CD or Treasury
When your annuity matures, you're not limited to another annuity. You can also move your funds into a bank CD, a Treasury bond, or a money market fund. However, fixed annuities (MYGAs) typically offer higher guaranteed rates than CDs of the same term — often 1% or more — plus the advantage of tax-deferred growth if you keep the money in an annuity. For retirement savers who don't need immediate liquidity, renewing into a new MYGA is usually the highest-yielding, lowest-risk option. Use our annuity vs CD comparison to see the difference for your specific amount.