- State Guaranty Association The New Mexico Life Insurance Guaranty Association (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Coverage for annuity benefits is generally $250,000 in present value per contract owner, per insurer. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment New Mexico generally taxes annuity and retirement income as ordinary income, with deductions for residents 65 and older. Social Security benefits are exempt for most low and middle income retirees under legislation effective since 2022. Confirm your specific situation with a tax professional.
- State Insurance Department The New Mexico Office of Superintendent of Insurance regulates annuities sold in New Mexico. You can verify any insurance professional's license through its online license lookup.
- Free Look Period New Mexico generally provides a free look period of at least 10 days for annuity contracts, often longer for replacement contracts. Your contract states the exact period that applies to you.
- Best Interest Standard New Mexico has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to New Mexico residents must act in the consumer's best interest.
Retiring in New Mexico
New Mexico offers high-desert living at a low cost, and its Social Security exemption now covers the large majority of its retirees.
Learn before you buy
Start with what an annuity actually is, then see how the types differ and which myths to ignore. If someone has already shown you a product, get a free second opinion before you sign.