Best Variable Annuities 2026 — Low-Cost VAs Ranked

By Editorial Team

Published April 1, 2026 · Updated May 5, 2026

The best variable annuities in 2026 include Jackson Perspective II (the #1 selling VA for 27+ consecutive quarters, with a best-in-class guaranteed lifetime withdrawal benefit), Equitable SCS (the leading RILA/buffer product offering significantly higher upside caps), and Nationwide’s broad lineup with competitive income riders across multiple product types. Each carrier holds an AM Best rating of A or higher.

Top VA and RILA Carriers at a Glance

Carrier	AM Best	Key Product	Type	Key Feature	Typical Total Fees
Jackson National	A	Perspective II	VA	Widest GLWB flexibility; uncapped sub-accounts	~3.10–3.50%
Equitable	A+	SCS (Structured)	RILA	High caps with 10–20% buffers	~1.00–1.60%
Nationwide	A+	Destination	VA	Broad sub-account lineup, strong GLWB	~2.80–3.20%
Lincoln Financial	A	Level Advantage	RILA	Tiered buffer options, competitive caps	~1.00–1.50%
Prudential	A+	FlexGuard	RILA	Multiple buffer/floor options	~0.95–1.45%
Pacific Life	A+	Pacific Choice	VA	Low-cost advisory share class	~1.30–2.80%
New York Life	A++	Premier Variable	VA	Highest financial strength rating in industry	~2.50–3.20%
Nationwide (Advisory)	A+	Monument Advisor	VA (I-share)	No M&E, lowest-cost VA structure	~0.20–0.80%

Variable Annuity vs. RILA: Know the Difference

A traditional variable annuity (VA) invests your premium into sub-accounts that mirror mutual funds. Your account value rises and falls with those sub-accounts — there is no floor against market losses unless you purchase a guaranteed benefit rider. In a severe bear market, a VA without an income guarantee can lose 30–50% of its value.

A registered index-linked annuity (RILA), sometimes called a buffer annuity or structured annuity, works differently. Instead of investing in sub-accounts, it links your return to an index — but provides a partial buffer against losses. A 15% buffer means the carrier absorbs the first 15% of any annual decline; you only lose if the index falls more than 15%. In exchange for accepting some downside risk, RILA caps are significantly higher than FIA caps — often 15–25% on a one-year S&P 500 strategy vs. 7–10% for an FIA.

RILAs are registered securities (hence the name), which means they must be sold with a prospectus by a licensed registered representative. Traditional VAs are also registered securities. FIAs, by contrast, are insurance products that do not require a securities license to sell. This structural difference explains why RILAs can offer higher caps — they can hold equity derivatives more efficiently.

Understanding VA Fee Layers

The total cost of a variable annuity with a guaranteed lifetime withdrawal benefit (GLWB) typically runs 2.80–3.50% per year, spread across multiple layers that are often disclosed separately — making it easy to underestimate the true cost.

The mortality & expense (M&E) charge typically runs 1.00–1.50% annually and covers the carrier’s insurance costs and profit margin — it is the single largest fee layer. The administrative charge adds another 0.10–0.30%. Subaccount management fees average 0.94% but range from 0.10% (index funds) to 1.50% (active managers). Optional income rider fees (GLWB, GMIB) add another 0.75–1.25%. A flat annual contract maintenance fee of $30–$50 applies to many smaller contracts.

For a detailed breakdown of every fee layer, see our dedicated article: Variable Annuity Fees Explained.

Fee-Based vs. Commission-Based: A Critical Distinction

The most important cost decision in purchasing a VA is share class. A B-share VA (the most common) charges a full M&E (typically 1.25–1.50%), pays the selling agent a commission of 5–7% upfront, and imposes a surrender charge schedule of 7–10 years.

An I-share VA (advisory/fee-based) eliminates the M&E entirely or reduces it to near zero, has no surrender charges, and charges no commission — instead, your financial advisor charges a separate advisory fee (typically 1%). The result: on a $500,000 contract over 15 years, the fee difference between B-share and I-share can exceed $120,000 in cumulative charges. The Nationwide Monument Advisor and Jackson Perspective Advisory are leading I-share products. If your advisor is a fee-only RIA, always ask for the advisory share class.

Carrier Deep Dives

Jackson National has held the #1 VA sales position for 27+ consecutive quarters. The Perspective II’s LifeGuard Freedom Flex GLWB is uniquely flexible — it allows 100% equity allocation while maintaining the income guarantee, unlike most competitors who restrict you to balanced or moderate allocations when a GLWB is active. This can meaningfully increase long-term account value. The Elite Access is Jackson’s accumulation-focused product with access to alternative sub-accounts.

Equitable’s Structured Capital Strategies (SCS) is the market leader in the RILA category. It offers one-year, three-year, and five-year segment options across multiple indexes (S&P 500, Russell 2000, MSCI EAFE), with buffers of 10%, 20%, or a -10% floor. The Equitable SCS review covers current cap rates in detail. For income, the Equitable Retirement Cornerstone offers traditional VA sub-accounts with a GLWB.

Lincoln Financial’s Level Advantage is a competitive RILA with tiered buffer options and some of the highest one-year caps available. The Choice Plus Assurance is Lincoln’s traditional VA with GLWB.

Frequently Asked Questions

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