Goldstein Scorecard: B (dated October 4, 2026). See how it is graded.
Nationwide Defender Annuity Review: A Buffered RILA, With October 2026 Caps
Written & reviewed by Hans Goldstein, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Facts verified against Nationwide’s Defender rate sheet (10/01/2026), product guide, May 1, 2026 prospectus and AM Best on October 4, 2026 · Updated
Nationwide Defender Annuity is a registered index-linked annuity (RILA) issued by Nationwide Life Insurance Company (AM Best A+, affirmed November 7, 2025), not a fixed indexed annuity. Nationwide absorbs the first 10% or 20% of an index loss at term end and you absorb the rest. Its October 1, 2026 rate sheet shows an 18% one-year S&P 500 cap with the 10% buffer and 12% with the 20% buffer. The product fee is 0% for contracts issued on or after June 1, 2025.
Correction (October 4, 2026): This page previously carried ratings and grades we could not verify at a primary source (S&P, Moody’s and Fitch without a dated carrier page, Weiss, KBRA, COMDEX, renewal and service tiers) and listed the carrier as “Nationwide Mutual.” Defender is issued by Nationwide Life Insurance Company. The page also mixed in fixed indexed annuity education that does not describe this contract; that has been replaced with the RILA terms from Nationwide’s prospectus and rate sheet.
Nationwide Defender current caps (October 1, 2026)
| Index and buffer | 1-year term | 3-year term | 6-year term |
|---|---|---|---|
| S&P 500®, 10% buffer | 18% cap | 85% cap | Uncapped, 100% participation |
| S&P 500®, 20% buffer | 12% cap | 45% cap | 100% cap |
| Russell 2000®, 10% buffer | 21% cap | Uncapped, 100% participation | Uncapped, 105% participation |
| MSCI EAFE, 10% buffer | 15% cap | not offered | not offered |
| Nasdaq-100®, 10% buffer | 19% cap | not offered | not offered |
| S&P MidCap 400®, 10% buffer | 24% cap | not offered | not offered |
| Fixed Strategy | 4% declared (contractual minimum 0.25%) |
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How the buffer works, in numbers
| Hypothetical S&P 500 result at the end of a 1-year term | 10% buffer, 18% cap | 20% buffer, 12% cap |
|---|---|---|
| Index up 25% | +18% (cap) | +12% (cap) |
| Index up 8% | +8% | +8% |
| Index down 8% | 0% (inside buffer) | 0% (inside buffer) |
| Index down 15% | −5% | 0% (inside buffer) |
| Index down 30% | −20% | −10% |
Contract basics
| Contract feature | What Nationwide publishes |
|---|---|
| Issuer | Nationwide Life Insurance Company, Columbus, Ohio; distributed by Nationwide Investment Services Corporation, member FINRA |
| Product type | Individual single-purchase-payment deferred annuity with index-linked strategies, sold by prospectus (dated May 1, 2026, supplemented July 27, 2026) |
| Buffers | 10% or 20%; the contractual minimum buffer for any strategy is 5% |
| Contractual minimums | Cap Rate never below 0.05%; Participation Rate at least 100% on capped strategies; Fixed Strategy at least 0.25% |
| Minimum premium | $25,000, single purchase payment only |
| Issue ages | Annuitant up to 85; no limit for owners |
| Product fee | 0% for contracts issued on or after June 1, 2025 (1.10% for contracts issued before that date) |
| Optional Return of Premium death benefit | 0.15% a year, annuitant and co-annuitant age 75 or younger |
| CDSC (surrender charge) | 8%, 8%, 7%, 6%, 5%, 4%, then 0% from year 7 |
| Market value adjustment | Positive or negative, on withdrawals above the free amount during the first 6 years |
| Free withdrawal | 10% of contract value at the start of each contract year, or the RMD if greater, during years 1 to 6 |
| Performance Lock | Lock an index strategy value once per term; fee 0.10% times the years left in the term (maximum 0.60% on a 6-year term) |
| Index type | Price return indexes; dividends are not included |
| Not available in | NY, OR, VI |
Surrender schedule by year
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7+ |
|---|---|---|---|---|---|---|---|
| CDSC | 8% | 8% | 7% | 6% | 5% | 4% | 0% |
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A | Nationwide Life Insurance Company: AM Best A+ (Superior), affirmed November 7, 2025 (AM Best). |
| Rate or cap competitiveness | B | Caps of 12% to 24% on 1-year terms (10/01/2026) buy more upside than Nationwide Peak 10’s 6.25% FIA cap, but you take index losses beyond the buffer; there is no direct comparison to a 5.80% to 6.00% MYGA, which has no market loss. |
| Guaranteed floor | D | No 0% floor: losses beyond the buffer reduce value. Contractual minimums are low: cap 0.05%, buffer 5% for new strategies. |
| Liquidity | B | 6-year CDSC from 8%, MVA in years 1 to 6, 10% or RMD free each year; values move daily during a term. |
| Costs | A | 0% product fee for contracts issued on or after June 1, 2025; optional ROP death benefit 0.15%; Performance Lock fee only if used. |
| Transparency | A | Dated rate sheet, product guide and full prospectus with contractual minimums are public. |
| Overall | B | Weighted toward financial strength, guaranteed floor and liquidity for a buyer who wants a known result. |
Pros and cons
Pros
- Higher upside limits: 18% one-year S&P 500 cap with the 10% buffer and 24% on the S&P MidCap 400, versus 6.25% on Nationwide Peak 10’s one-year S&P 500 cap (both October 1, 2026).
- No product fee on contracts issued on or after June 1, 2025.
- Six-year surrender period starting at 8%, versus 10 years on Nationwide Peak 10.
- The prospectus states contractual minimums in writing (cap 0.05%, buffer 5%, participation 100% on capped strategies).
- Issuer rated A+ (Superior) by AM Best.
Cons
- Losses beyond the buffer are yours: with the 10% buffer, a 30% index drop is a 20% loss at term end.
- Mid-term values follow a daily formula and can show losses even inside the buffer; withdrawals or death claims mid-term use that value.
- Price return indexes exclude dividends.
- An MVA can lower withdrawals above the free amount in the first six years.
- It is a securities product sold by prospectus; it needs a securities-registered representative and suits a buyer who accepts some loss.
Who it’s for, and when to look elsewhere
Fits: a buyer with at least $25,000 and a six-year horizon who wants more upside than an FIA cap allows and can accept losses beyond 10% or 20% in a bad year. The 6-year S&P 500 strategy with a 10% buffer is uncapped at 100% participation on the October 1, 2026 sheet, which suits someone who will truly hold for the full term.
Look elsewhere if: you do not want any market loss, or you mainly want a known rate. A MYGA locks a declared rate for the term with no index exposure. For comparison, A-rated-or-better insurers were paying about 5.80% to 6.00% on 5-year MYGAs and the best nationally available 5-year CDs about 4.35% to 4.50% APY on September 24, 2026 (AnnuityRateWatch carrier data; DepositAccounts). Current rates: MYGA rates.
If you want index-linked crediting with index losses not credited, compare a fixed indexed annuity such as Nationwide Peak 10, which trades a lower cap for a 0% floor on index credits.
Questions to ask your agent
- What are the contractual minimum cap, minimum buffer and minimum participation rate in my contract? The prospectus says 0.05%, 5% and 100%; please confirm them in writing for my state.
- What is the full CDSC (surrender charge) schedule by year, how is the MVA calculated, and what is the free withdrawal amount each year?
- How is the daily Index Strategy Value calculated, and what would I receive if I withdrew halfway through a 6-year term?
- Which strategy are you recommending, and why that term and buffer for my timeline?
- How are you paid on this product? Commission comes from the insurer and is built into pricing, not deducted from my premium. What is the percentage, and does a different term or product pay you more? (See how annuity commissions work.)
From my desk
When I look at a Defender proposal, I check the strategy term against the client’s actual timeline first. A 6-year uncapped strategy reads well on paper, but the buffer and the upside are only fully applied on the term end date. If money might be needed in year 3, the daily value formula decides what you get, not the buffer.
The number buyers most often misread on a RILA is the buffer itself. A 10% buffer is not a 10% maximum loss; it is the first 10% of loss that Nationwide absorbs. Above that, the loss is yours. I write out the down 15% and down 30% cases, like the table above, before anyone signs.
Against a MYGA, I am clear that these are different jobs. A MYGA locks a rate with no market loss; Defender is for money that can ride out a down market for six years in exchange for higher caps. Run the surrender math with the annuity surrender charge calculator and compare growth with the annuity calculator.
Hans Goldstein, independent licensed insurance producer, CA license 4273294, NPN 20602398. Questions: 213-414-2808 or hans@hansgoldstein.com.
Frequently asked questions
Is Nationwide Defender a fixed indexed annuity?
No. Nationwide Defender Annuity is a registered index-linked annuity (RILA) sold by prospectus. It uses a 10% or 20% buffer instead of a 0% floor, so losses beyond the buffer reduce your value.
What are the Nationwide Defender caps in October 2026?
As of October 1, 2026: S&P 500 one-year cap 18% with the 10% buffer and 12% with the 20% buffer; Russell 2000 21%, MSCI EAFE 15%, Nasdaq-100 19% and S&P MidCap 400 24% on one-year terms with the 10% buffer.
What fees does Nationwide Defender charge?
The product fee is 0% for contracts issued on or after June 1, 2025 (1.10% before). The optional Return of Premium death benefit costs 0.15% a year, and a Performance Lock fee of 0.10% per remaining term year applies only if you lock.
How long is the Defender surrender period?
Six years: 8%, 8%, 7%, 6%, 5%, 4%, then 0% from year 7. An MVA can also apply to withdrawals above the free amount during the first six years.
What is the minimum investment?
$25,000 as a single purchase payment. The annuitant can be up to age 85.
Is Nationwide Defender guaranteed?
Buffer protection and the Fixed Strategy rate are contractual and backed by the claims-paying ability of Nationwide Life Insurance Company. The contract can lose value, and it is not FDIC insured.
Related reviews: Prudential FlexGuard RILA · Brighthouse Shield Level RILA · Equitable Structured Capital Strategies · Nationwide Peak 10 FIA · Are annuities FDIC insured?
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Talk to Hans Goldstein, a licensed independent insurance producer.
A buffered annuity (RILA) can lose value: index losses beyond the buffer reduce your account, caps and buffers reset each term, and early withdrawals can carry a surrender charge and an interim value adjustment. Get an independent review before you commit your retirement savings to a multi-year contract.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Sources (checked October 4, 2026)
- Nationwide: Defender Annuity index strategies and current rates (VAM-3629AO.2): as of October 1, 2026
- Nationwide: Defender Annuity product guide (VAM-3609AO.3): dated 04/26
- Nationwide: Defender Annuity prospectus: dated May 1, 2026, supplement July 27, 2026
- Nationwide: Nationwide Defender Annuity product page: read October 4, 2026
- AM Best: Affirms Credit Ratings of Nationwide Mutual Insurance Company and Its Key Operating Subsidiaries: November 7, 2025
- AnnuityRateWatch carrier data and DepositAccounts (MYGA and CD benchmark): September 24, 2026
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.
I do not sell securities products. Nationwide Defender is a registered security sold by prospectus through securities-registered representatives; this page is education, not an offer.