What are Brighthouse's current fixed-rate annuity rates?

Suze Orman generally advises against complex, high-fee or variable/indexed annuities, but she is more open to simple, traditional fixed or immediate income annuities if you need a guaranteed income floor in retirement.

Suze Orman’s View on Annuities

• What she dislikes: She strongly discourages variable and complex indexed annuities due to high hidden fees, high commissions for salespeople, and long surrender periods (where pulling out your money early triggers a steep penalty). She also warns against putting any annuity inside a tax-advantaged retirement account like an IRA, because paying for tax deferral you already possess makes no sense.
• What she accepts: She acknowledges that simple immediate income annuities (Single Premium Immediate Annuities, or SPIAs) or deferred income fixed products can work well. If you lack a traditional pension and want to convert a portion of your savings outside a retirement account into a reliable, "pension-like" monthly paycheck to cover basic living expenses, she views them as a practical tool.

Key Risks She Highlights

• Insurers' financial health: Your guarantee is only as strong as the balance sheet of the insurance company backing the policy. They are not FDIC-insured.
• Tax treatment: Gains are taxed as ordinary income upon withdrawal rather than at lower capital gains rates.
• Tied-up cash: Your money can be locked away for years with high penalties if you need emergency liquidity.

You can read more about her perspective directly on Suze Orman's Official Resources.

A $1,000,000 fixed immediate annuity typically pays between $5,200 and $8,800 per month for life. The exact amount depends primarily on your age and gender when payments begin. Because women statistically have longer life expectancies, they generally receive a slightly lower monthly payout than men of the same age.

Monthly Payout Estimates by Age & Gender

Current market rates for a Single Life, Immediate Annuity funded with a $1,000,000 lump sum yield the following illustrative monthly payouts:

Key Variables Impacting Your Payout

• Age and Life Expectancy: The older you are when you choose to "annuitize" (start taking payments), the higher your monthly check. The insurance carrier calculates that it will have to make fewer total payments.
• Single vs. Joint Life: A joint annuity that continues paying as long as either you or your spouse is alive will reduce your monthly payout by 10% to 20% compared to a single-life policy.
• Principal Preservation vs. Maximized Income:
  • Single-Life Immediate Annuity (SPIA): Yields the highest monthly cash flow because the carrier keeps any remaining principal when you pass away.
  • Multi-Year Guaranteed Annuity (MYGA): If you prefer to live only off the interest and keep your $1,000,000 intact for beneficiaries, a fixed MYGA yielding 5.00% will pay a flat $4,167 per month.
• Inflation Protection: Adding a Cost-of-Living Adjustment (COLA) rider will cause your monthly check to start smaller but grow over time to prevent inflation from eating your purchasing power.

To tailor this advice, what is your current age, and are you looking for a single or joint payout for you and a spouse?

Brighthouse Financial's current fixed-rate annuity initial guarantee rates depend on your contract type (with or without a Market Value Adjustment) and your purchase payment tier ($25,000–$99,999 vs. $100,000 and above).

Fixed Rate Annuity MVA Rates

For contracts with a Market Value Adjustment (MVA), effective September 2026, the rates are:

• 3-Year Term: 4.65% (for $25k–$99k) / 4.90% (for ≥$100k)
• 5-Year Term: 5.05% (for $25k–$99k) / 5.30% (for ≥$100k)
• 7-Year Term: 5.20% (for $25k–$99k) / 5.45% (for ≥$100k)

Key Contract Features

• Minimum Guaranteed Interest Rate (MGIR): 1.20%
• Free Withdrawals: 10% of the purchase payment in year one, and 10% of the account value annually in subsequent years.
• Automatic Renewal: Automatically rolls into a 1-year guarantee period at the current renewal rate after the initial term ends.

(Note: Rates are subject to change and may vary or be unavailable depending on your state—such as California or New York.)

Dave Ramsey strongly advises against buying annuities, calling them expensive, low-yielding products that are inferior to mutual funds.

Core Arguments Against Annuities

• High Fees and Commissions: Ramsey highlights that many annuities carry steep hidden fees, surrender charges, and high commissions (sometimes up to 10%) that eat into your returns.
• Low Returns: He argues that fixed annuities offer poor growth (often comparing them to a low-paying Certificate of Deposit with extra fees), claiming you can make much higher long-term returns by investing in growth stock mutual funds.
• Illiquidity: He points out that locking your money into an annuity contract makes it difficult and expensive to access if you need cash before the surrender period ends.
• The "Rare Exception": Ramsey states he only sees a potential use for a variable annuity (a mutual fund inside an insurance contract) if you are completely out of debt, your home is paid off, and you have already maxed out all standard retirement accounts like 401(k)s and IRAs. Otherwise, his blanket advice is to avoid them entirely.

Common Industry Counterpoints

Many financial planners and insurance specialists argue that Ramsey’s blanket stance is overly dismissive:

• Guaranteed Income: Critics note that What Is an Annuity and How Does It Work? - Ramsey defines annuities as insurance contracts for guaranteed lifetime income, not pure growth investments.
• Principal Protection: Fixed and multi-year guarantee annuities protect your principal from market crashes, which can benefit risk-averse retirees who cannot afford sequence-of-returns risk.
• Fee Misconceptions: Many fixed or no-load annuities feature zero annual administrative fees if you do not add expensive optional riders.

The future outlook for Brighthouse Financial (BHF) is mixed, characterized by cautious analyst sentiment, ongoing acquisition interest, and variable profit performance.

Financial Performance & Analyst Outlook

• Consensus Ratings: Wall Street analysts generally rate Brighthouse Financial as a "Hold" or "Reduce," with average 12-month price targets hovering between $56 and $65.
• Earnings & Revenue: Recent quarterly results showed mixed performance, including a revenue dip in Q2 2026 to $2.10 billion and an adjusted EPS miss ($4.45 vs. $4.77 expected).
• Growth Projections: Long-term projections estimate steady annual revenue growth around 7.5%, though near-term pressures remain regarding negative free cash flow and profit margin gains.

Potential Acquisition & Strategic Interest

• M&A Rumors: Market activity has been heavily influenced by exploration of potential buyouts or takeover bids, including renewed interest from investment firms like Sixth Street and previous discussions involving Aquarian Capital.
• Valuation Impact: Speculation surrounding a potential outright sale continues to act as a key catalyst for the stock, creating notable volatility and shifting short-term upside expectations.