Annuity Payout Calculator
Calculate your annuity payout amounts and understand how much monthly income your annuity will provide. Compare different payout options and see the impact of various factors on your retirement income.
Payout Results
Payout Analysis
Option Comparison
Understanding Annuity Payouts
Annuity payouts provide a guaranteed income stream for life or a specified period. Understanding the different payout options and how they affect your monthly income is crucial for retirement planning.
Payout Options
| Option | Description | Payment Amount | Risk Level |
|---|---|---|---|
| Single Life | Payments continue until death | Highest monthly payment | Longevity risk |
| Joint & Survivor | Payments continue to surviving spouse | Reduced payments | Lower risk |
| Period Certain | Guaranteed payments for fixed period | Moderate payments | Low risk |
| Life with Period Certain | Life payments with minimum guarantee | Balanced payments | Moderate risk |
Factors Affecting Payout Amounts
- Age: Older annuitants receive higher payments due to shorter life expectancy
- Gender: Women typically receive lower payments than men due to longer life expectancy
- Health: Impaired health may qualify for higher payments through impaired risk annuities
- Payment Frequency: Monthly payments are lower than annual payments
- Inflation Protection: COLA reduces initial payments but protects against inflation
- Guarantees: Additional guarantees reduce payment amounts
Cost of Living Adjustments (COLA)
COLA protects your purchasing power by increasing payments annually. However, it reduces your initial payment amount.
- Simple COLA: Fixed percentage increase (e.g., 2% annually)
- Capped COLA: Increases up to a maximum percentage
- Inflation-Indexed: Based on CPI or other inflation measures
- Compound COLA: Increases based on previous year's payment
Tax Considerations
- Exclusion Ratio: Portion of payment that is tax-free return of principal
- Taxable Portion: Earnings are taxed as ordinary income
- 1035 Exchange: Tax-free transfer between annuity contracts
- Required Minimum Distributions: May be required starting at age 73
Payout Rates
Typical payout rates vary based on age, gender, and options selected:
- Age 60: 4.5-5.5% payout rate
- Age 65: 5.0-6.5% payout rate
- Age 70: 6.0-8.0% payout rate
- Age 75: 7.0-9.5% payout rate
*Rates are approximate and vary by insurance company and market conditions
Important: Annuity payouts are estimates based on typical insurance company rates. Actual payouts depend on the specific annuity contract, insurance company, interest rates, and your personal factors. Consider consulting with a financial advisor before purchasing an annuity.