How much would a $100,000 annuity pay if bought at age 65?
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The monthly payments on a $100,000 annuity won't cover all your expenses, but they could still be a big part of your retirement plan.
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Retirement planning in 2025 looks a lot different than it did even a few years ago. Between persistent (but cooler) inflation, increased stock market volatility and high borrowing costs, many near-retirees are searching for financial stability in an increasingly unpredictable financial landscape. For some, that means pivoting away from aggressive growth strategies and toward more dependable sources of income, like annuities.
Annuities offer something that few other retirement investments can: guaranteed monthly income for life. But with interest rates expected to fall later this year, locking in an annuity while rates are still relatively high could make a real difference in the size of your payments. The higher the prevailing interest rate when you buy, the larger your monthly checks will be.
Still, while the concept is simple — you give an insurer a lump sum in exchange for a lifetime of payments — the actual numbers can vary quite a bit depending on your personal profile. So, what can a 65-year-old retiree expect from a $100,000 annuity in today's market? That's what we'll examine below.
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How much will a $100,000 annuity pay monthly if bought at age 65?
If you're 65 and ready to convert $100,000 into guaranteed monthly income through an immediate annuity, here's what you can expect to be paid monthly, according to an analysis of Cannex data by Annuity.org:
Male, age 65: About $652 per month
About $652 per month Female, age 65: About $627 per month
About $627 per month Joint life, age 65: About $570 per month
These figures represent what a $100,000 lifetime income annuity could pay under today's elevated rate environment. But while these figures are a useful starting point, they only tell part of the story. Other factors can impact how much income your annuity generates, including:
Gender: Women typically receive lower monthly payments than men of the same age because actuarial tables show women tend to live longer. Since insurance companies expect to make payments for more years to female annuitants, they adjust the monthly amount downward to account for this extended payout period. The difference might seem small — about $25 per month in this example — but it adds up to roughly $300 annually.
Women typically receive lower monthly payments than men of the same age because actuarial tables show women tend to live longer. Since insurance companies expect to make payments for more years to female annuitants, they adjust the monthly amount downward to account for this extended payout period. The difference might seem small — about $25 per month in this example — but it adds up to roughly $300 annually. Interest rate environment: Fixed annuities guarantee a set interest rate over a specific period, and insurance companies invest your premium in bonds and other fixed-income securities. When rates are higher, they can generate better returns on your money and pass along higher monthly payments. Since rates are expected to decline as the Federal Reserve shifts toward potential rate cuts later in the year, now may be a smart time to lock one in.
Fixed annuities guarantee a set interest rate over a specific period, and insurance companies invest your premium in bonds and other fixed-income securities. When rates are higher, they can generate better returns on your money and pass along higher monthly payments. Since rates are expected to decline as the Federal Reserve shifts toward potential rate cuts later in the year, now may be a smart time to lock one in. Type of annuity: The numbers above are for an immediate fixed annuity, which starts paying out right away and provides the same amount each month. But if you choose another type of annuity
The numbers above are for an immediate fixed annuity, which starts paying out right away and provides the same amount each month. But if you Payout structure and optional features: You can customize your annuity with things like cost-of-living adjustments, period-certain guarantees (which continue payments for a minimum number of years) and death benefits
You can customize your annuity with things like cost-of-living adjustments, period-certain guarantees (which continue payments for a minimum number of years) Health status and lifestyle: In some cases, having a health condition can work in your favor in terms of your payout, as there are insurers that offer "enhanced" or "impaired life" annuity options. These annuities provide higher monthly payments to individuals with shorter life expectancies due to health issues, so if you have diabetes, heart conditions or other chronic illnesses, be sure to disclose these when getting quotes, as they could increase your monthly payout.
Compare your annuity options and get started now.
Should you buy a $100,000 annuity at age 65?
A $100,000 annuity won't replace a full salary in retirement, but it can offer meaningful supplemental income, especially when paired with Social Security and other savings. At $652 per month for a 65-year-old man (or $627 for a woman), the monthly payments on a $100,000 annuity are not enough to cover all your expenses, but the payments can help with essentials like groceries, utility bills or healthcare costs. And because payments are guaranteed for life, you don't have to worry about outliving this portion of your income.
This kind of predictability is one of the biggest advantages of an annuity. So, if you're concerned about market swings or running down your savings too quickly, locking in a fixed monthly payment can bring peace of mind. That said, annuities aren't right for everyone. If you have ample retirement income already, want more liquidity or prefer growth potential over guarantees, you may be better off exploring other options. Still, for those seeking stability, a $100,000 annuity can be a smart addition to the mix.
The bottom line
A $100,000 annuity can provide a reliable source of retirement income, with monthly payments of around $570 to $652 depending on your age, gender, and whether you're covering one life or two. And, in a high-rate environment, like the one we're in now, locking in an annuity now could offer better income security than if you wait until rates fall.
Whether an annuity makes sense for you, though, depends heavily on your overall retirement strategy, your need for guaranteed income and how much flexibility you want in the years ahead. But for many retirees looking to turn part of their nest egg into predictable monthly payments, a $100,000 annuity is a compelling and timely option to consider.
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