Nationwide Destination Freedom+ Variable Annuity (September 2026): 1.00% Base Fee, 5-Year Surrender Schedule
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Fees and terms checked against Nationwide's product guide · Updated
Nationwide Destination Freedom+ is a variable annuity with a 1.00% base annual charge (0.85% mortality and expense + 0.15% administrative), a 5-year surrender schedule (7%, 7%, 6%, 5%, 3%), a $10,000 minimum and 150+ subaccounts. Income and enhanced death benefit riders are optional and cost extra. It can lose value.
Correction (September 24, 2026): this page used to say the contract had a built-in lifetime income rider and an M&E charge of about 1.30%. Nationwide's guide shows a 1.00% total base charge, with income riders optional.
Also see: Nationwide Peak 10 Review
I'm licensed to sell insurance products, not securities, so I don't sell variable or registered index-linked annuities. This page describes the product from the issuer's public materials so you can ask better questions. For money you want guaranteed, I can quote fixed annuities (MYGAs) and income annuities.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Destination Freedom+ at a glance
| Feature | Detail |
|---|---|
| Base annual charge | 1.00% (0.85% M&E + 0.15% administrative; admin waived at $1 million+) |
| Maintenance charge | $50 a year, waived at $50,000 contract value |
| Surrender charge (CDSC) | 7%, 7%, 6%, 5%, 3%, 0% after 5 completed years, per purchase payment |
| Minimum | $10,000 initial; $500 subsequent ($50 by ACH) |
| Ages | Annuitant up to 85; owner any age |
| Investment options | Over 150 variable subaccounts |
| Optional death benefits | Return of Premium 0.20%; Highest Anniversary 0.30% (annuitant 75 or younger) |
| Lifetime income | Optional Nationwide Lifetime Income Rider+ suite, additional cost, on certain Destination annuities |
Get an independent read on Nationwide Destinationfreedom VA before you sign.
Send your email and I'll send you what this product actually guarantees, what the surrender schedule really costs you, and the two or three carriers paying more for the same guarantee. If it's already a good fit, I'll tell you that.
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If what you want is a guarantee
A variable annuity guarantees nothing about the account value. If the goal is principal protection with a known rate, a fixed annuity does that directly.
MYGA benchmark: insurers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs (public carrier rate sheets, October 14, 2026); rates vary by state, premium and carrier. If the goal is lifetime income, compare an income annuity quote to the cost of adding an income rider.
Current MYGA rates · Annuity payout calculator
Sources
- Nationwide Destination Freedom+ product guide (VAM-2518AO.9, 09/24)
- SEC filing: Destination Freedom+ supplement dated July 22, 2026
- public carrier rate sheets (MYGA benchmark), October 14, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Nationwide. Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Frequently asked questions
What are the fees on Nationwide Destination Freedom+?
A 1.00% annual charge (0.85% mortality and expense plus 0.15% administrative; the administrative charge is waived at $1 million or more), a $50 annual maintenance charge waived at $50,000, plus underlying fund expenses and any optional riders.
What is the surrender charge?
A contingent deferred sales charge of 7%, 7%, 6%, 5%, 3%, then 0% after 5 completed years, applied to each purchase payment.
Does Destination Freedom+ have a built-in lifetime income rider?
No. Nationwide's product guide lists no built-in income benefit. Nationwide says its Lifetime Income Rider+ suite can be added for an additional cost to certain Destination annuities.
What is the minimum investment?
$10,000 initial, $500 subsequent (or $50 by ACH). The annuitant can be up to age 85.
Can I lose money?
Yes. It is a variable annuity, so the value follows the subaccounts you choose. I'm not securities-licensed and don't sell variable annuities.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
A variable annuity can lose value, and its costs stack up: the base charge, the fund expenses and any riders you add. Get an independent review before you commit your retirement savings to a multi-year contract.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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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.