Understanding the S&P 500 Par Rate: A Closer Look 2.0

September 3, 2025

Last year, we shared an article explaining the benefits of an uncapped S&P 500® Par Rate strategy. If a client had taken action then, they’d have a 60% S&P 500 Participation Rate.

Let’s break it down:

Your client purchased a fixed indexed annuity, or FIA, on July 30, 2024. The S&P 500 closing price was $5,436.44. By July 30, 2025, the index had grown to $6,3362.90. That’s a gain of about 17.04% in less than a year!

Even if the index stays flat until the anniversary date, the client could still earn over a 10.23% return. If the index keeps rising, the gains could be even bigger.

Why Consider an Uncapped Strategy?

Here’s why it may be a move for your clients to discover.:

  • Take Advantage of Index Growth: If the S&P 500 increases over a year, the client participates in a fixed portion that growth. There is no upper limit to what they can earn! That can make a big difference over five, seven or 10 years.
  • Easy to Explain: Straightforward crediting structure that may be easier to explain
  • Industry Perspective: Jon Blomquist, senior product leader at Life Innovators, observed, "It sure looks like the policyholders might be leaving some money on the table when hitching their retirement wagon to the limited upside of a Cap Rate.”1

Interest Rates Matter

In 2024, we also talked about how interest rates affect FIA strategies. The Federal Reserve lowered rates by 0.50% in September 2024. By July 2025, the rate was down to 4.33%. As of August, the probability of a rate decline is 84.8% according FedWatch tool.2

Lower rates can lead to lower cap and participation rates in the future. That’s why discussing uncapped strategies with your clients can help them meet their retirement goals.

Why Choose The Standard?

The ECI Plus annuity offers all three S&P 500 crediting strategies: Cap, Trigger and Participation rates. It offers 10 allocation options with guaranteed rates for 5 to 10 years, depending on the selected strategy. All from a company with over 100 years of financial strength.

Help your clients grow their retirement savings with confidence.

Learn More About ECI Plus >

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