Last updated: March 2026 | Reviewed by: AnnuityJournal Editorial Team
Nationwide quietly added the Merrill Lynch Strategic Balanced Index to the New Heights 9 in recent product updates — and it’s one of the more credible proprietary indexes available on any FIA right now. The ML Strategic Balanced uses a rules-based volatility-control mechanism that adjusts equity and bond exposure to smooth returns across market cycles, which means less whiplash than a pure S&P 500 strategy in turbulent years. Pair that with competitive standard cap rates and an A+ AM Best rating, and the New Heights 9 is one of the more complete packages in the FIA market.
What Is the Nationwide New Heights 9?
The Nationwide New Heights 9 is a fixed index annuity issued by Nationwide Life and Annuity Insurance Company. The “9” refers to the 9-year surrender period. It’s designed for retirement accumulation and income, offering index-linked interest potential with a guaranteed floor of zero percent — meaning you can’t lose money due to market declines.
It includes an optional income rider (the Nationwide Income Protector Benefit) that adds a guaranteed lifetime withdrawal feature for an additional annual fee.
Current Cap Rates and Crediting Strategies (2026)
The New Heights 9 offers several crediting options. Current rates as of early 2026:
| Index Strategy | Cap Rate / Participation | Crediting Method |
|---|---|---|
| S&P 500 Annual Point-to-Point | ~9.00% cap | Annual, with cap |
| S&P 500 2-Year Point-to-Point | ~17.00% cap | 2-year, with cap |
| Bloomberg US Dynamic Balance II | ~140–160% participation | Annual, uncapped |
| Nasdaq-100 Annual Point-to-Point | ~6.50% cap | Annual, with cap |
| Fixed Account | ~3.00% declared rate | Daily crediting |
Rates shown are approximate and as of early 2026. Cap rates are declared by Nationwide and subject to change on each contract anniversary, subject to contractual minimums.
Income Rider: Nationwide Income Protector Benefit
The optional income rider provides a guaranteed income base that grows independently of market performance. Key features:
- Income Base Roll-Up: Typically 7–8% simple interest annually during deferral (check current illustration for exact rate)
- Payout Rates: Age-based percentages applied to income base when you activate withdrawals
- Rider Fee: Approximately 0.95–1.10% of income base annually
- Lifetime Guarantee: Income continues for life even if account value depletes to zero
Estimated income on a $200,000 deposit with 10-year deferral:
| Age at Income Start | Approximate Annual Income |
|---|---|
| 65 | ~$14,000–$16,000/year |
| 70 | ~$17,000–$19,000/year |
| 75 | ~$20,000–$22,000/year |
Estimates for illustration only. Actual income depends on contract terms, current payout rates, and income base growth.
Nationwide Financial Strength
Nationwide is one of the most financially secure insurance carriers in the country:
- AM Best: A+ (Superior)
- S&P: A+ (Strong)
- Moody’s: A1
- Total Assets: Over $280 billion
For a lifetime annuity contract, carrier financial strength matters enormously. Nationwide’s A+ AM Best rating puts it in the top tier. See our full Nationwide annuity carrier review for more detail.
Nationwide New Heights 9 Pros and Cons
Pros
- Competitive S&P 500 cap rates: Among the highest caps available in the current rate environment
- Financially dominant carrier: A+ AM Best with $280B+ in assets
- 2-year crediting option: The 2-year S&P 500 strategy often outperforms the annual option over full market cycles
- Solid income rider: Strong roll-up rate with competitive payout percentages
- 10% free withdrawal annually: Access to funds without surrender charges
Cons
- 9-year surrender period: Longer than some competitors (e.g., 7-year products)
- Income rider carries annual fee: Adds cost that reduces account value growth slightly
- Cap rates subject to change: Strong caps today don’t guarantee strong caps in future years
- Proprietary indexes can be opaque: Volatility-controlled indexes are harder to evaluate than pure S&P 500 exposure
Who Is the New Heights 9 Best For?
The Nationwide New Heights 9 is a strong fit for:
- Ages 55–68 with a 5–10 year deferral window before needing income
- Buyers who want strong index participation (especially the competitive S&P 500 cap) AND income rider security
- Those who value Nationwide’s brand recognition and financial strength
- Buyers who are comfortable with a 9-year commitment and won’t need significant liquidity
Compare it against the Allianz 222 if income rider bonus features are your priority, or the Athene Agility 10 if maximizing pure cap rates is your goal.
How to Buy the Nationwide New Heights 9
The New Heights 9 is sold through licensed insurance agents and financial advisors. Nationwide does not sell direct. Work with an independent agent who can run a personalized illustration and compare the product side-by-side with alternatives.
Key questions to ask your agent:
- What is the current S&P 500 cap rate and what is the contractual minimum?
- What are the income base roll-up rate and payout percentages at my age?
- What does the full surrender charge schedule look like?
- How does this compare to the Athene Agility 10 or American Equity AssetShield?
Frequently Asked Questions
What happens if the market drops — do I lose money?
No. Fixed index annuities like the New Heights 9 guarantee a floor of zero — your account value cannot decrease due to index losses. In a down year, you simply receive 0% interest, not a negative return.
Is the income rider required?
No. The Nationwide Income Protector Benefit is optional. If you don’t need guaranteed lifetime income, you can skip the rider and avoid its annual fee, keeping more of your account value growing through index crediting.
Can I take money out before the 9 years end?
Yes — up to 10% of your account value per year is available as a free withdrawal without surrender charges. Amounts above 10% are subject to the surrender charge schedule, which typically starts at 9% in year 1 and grades to zero.
How does the New Heights 9 compare to a CD?
A bank CD guarantees a fixed rate with FDIC insurance. The New Heights 9 offers potentially higher returns linked to index performance, tax deferral, and lifetime income options — but without FDIC coverage. The annuity is backed by Nationwide’s general account and state guaranty associations. See our annuity vs. CD comparison.
What are the tax implications?
Growth inside the annuity is tax-deferred. You pay ordinary income tax on earnings when you take withdrawals. If held inside a traditional IRA, the entire withdrawal is taxable. See our guide to annuity taxation for more detail.
