Nationwide Destination Future
Product Details
- Minimum premium of $15,000, maximum premium of $1,000,000.
- Ownership options include individual person or entity, but joint ownership cannot include a non-person entity.
- Maximum age for annuitant and annuitization is 90 years old. Other optional benefits may have age restrictions.
- 0.85% M&E fee, 0.10% admin fee, $30 annual charge unless contract value is over $50,000. Administration charge waived for contracts over $1 million.
Pros
- Base product fees are lower than comparable variable annuities and can fall further at certain premium tiers
- Over 100 investment options available
- Five optional riders for further customization
Cons
- Rider fees vary based on the timing of issuance and single versus joint ownership
- Investment expense ratios are high relative to alternative options in a typical brokerage account
- Some investment options are restricted when paired with certain riders
- The minimum guaranteed lifetime income benefit is lower than higher options associated with FIA contracts
About Nationwide Destination Future
The Nationwide Destination Future is a variable annuity with several investment and rider options. Individuals or couples can own this product to enhance retirement savings with tax-deferral and flexible annuitization options.
The product costs associated with the Destination Future are low relative to peers, at 0.95%, or 0.85% for contracts over $1 million. A standard death benefit is included in the contract for no additional cost. For added protection, owners can choose between seven different optional riders.
| Rider | Details | Additional Cost |
| Lifetime Income Rider+ Core | Some age, income, and investment restrictions apply | Single Life: 1.45% (maximum 1.50%) Joint Life: 1.60% (maximum 1.90%) |
| Lifetime Income Rider+ Accelerated | Higher lifetime withdrawal percentage until contract value reaches zero, then reverts to a lower percentage | Single Life: 1.45% (maximum 1.50%) Joint Life: 1.60% (maximum 1.90%) |
| Lifetime Income Rider+ Max | Higher lifetime withdrawal percentage until contract value reaches zero, then reverts to a lower percentage | Single Life: 1.45% (maximum 1.50%) Joint Life: 1.60% (maximum 1.90%) |
| Return of Premium | Max age of 85 | 0.1% |
| Highest Anniversary Value | Max age of 80 | 0.4% |
| Return of Premium with Spousal Protection | Death benefit paid out to either spouse; Max age of 85 | 0.2% |
| Highest Anniversary Value with Spousal Protection | Death benefit paid out to either spouse; Max age of 80 | 0.5% |
Additionally, this variable annuity offers investment options for portfolio DIYers and set-it-and-forget-it investors alike. All investment options are mutual funds, and strategies span all asset classes and styles.
Read More: The Best Annuities of 2024
Variable annuities can be excellent for sheltering additional assets into a tax-deferred account when the limits on other retirement accounts, such as IRAs or 401(k)s, have been exhausted. The Nationwide Destination Future annuity offers a balance of investment options and optional riders for added protection. This provides more flexibility and guarantees than other investment-only variable annuities from a well-rated company.
Stephen Kates, CFP®Principal Financial Analyst for Annuity.orgStephen Kates, CFP® is a personal finance expert specializing in financial planning and education. He serves as the Principal Financial Analyst for Annuity.org, where he delves into industry trends to support consumers and financial advisors on wealth management, annuities, retirement planning, and investing.
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Our Take on the Nationwide Destination Future
The Nationwide Destination Future offers a blend of premium variable annuity features, including broad investment options and optional riders for income and death benefits. Some investment-only variable annuities have lower product costs but do not offer any added features or riders for protection, which may leave investors at the mercy of volatile markets.
Like most variable annuities, the mutual funds available carry higher expense ratios than comparable mutual fund classes in a brokerage account. Higher expense ratios can add to the overall cost of the investment and should be incorporated into any cost assumptions before purchase.
Overall, the Nationwide Destination Future variable annuity is a great option for investors seeking tax deferral, growth and optional income or death benefit protection.
Compare Products From Nationwide
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| Product |
Rate
|
Guarantee Period
|
Surrender Period
|
AM Best Rating
|
|---|---|---|---|---|
Platinum Edge |
3.95% | 5 Years | 5 Years | A+ |
|
Platinum Edge |
4.20% | 10 Years | 10 Years | A+ |
|
Platinum Edge |
3.90% | 4 Years | 4 Years | A+ |
|
Platinum Edge |
3.35% | 3 Years | 3 Years | A+ |
|
Platinum Edge |
4.00% | 6 Years | 6 Years | A+ |
|
Platinum Edge |
4.15% | 9 Years | 9 Years | A+ |
|
Platinum Edge |
4.05% | 7 Years | 7 Years | A+ |
|
Platinum Edge |
4.10% | 8 Years | 8 Years | A+ |
|
Secure Growth |
3.60% | 5 Years | 5 Years | A+ |
|
Secure Growth |
3.80% | 5 Years | 5 Years | A+ |
About Nationwide
In business for over 90 years, Nationwide has weathered significant market and industry turbulence and remains a quality company with broad business interests in insurance, annuities and other investment products. Nationwide boasts nearly $300 billion in assets, making it one of the largest financial companies in the United States.
Financial Stability
Nationwide maintains very good ratings from rating agencies, although Fitch does not rate them. Nationwide has rebuilt its financial standing since taking a hit during the 2008 financial crisis.
Nationwide’s Credit Ratings
| Rating Company | Credit Rating | Highest Rating Possible |
| AM Best | A+ | A++ |
| Moody’s | A1 | Aaa |
| Fitch | Not Rated | AAA |
| Standard & Poor’s | A+ | AAA |
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