The exact rate of return you’ll receive from an indexed annuity is impossible to predict because your funds is linked to market returns, such as the S&P 500 or a similar stock market index. The returns will also differ from product to product. Each annuity provider will have their own method of calculating returns, and each sets their own rates.
Some annuity products have a cap, which sets a maximum rate of return, while others use a spread, which deducts a portion of the indexed returns, and participation rates. While an indexed annuities future balance is impossible to predict, we can look back at how they would perform in past market conditions.