If you’re considering a $1 million annuity, it’s important to understand how that lump sum translates into reliable monthly income. The charts below break down example lifetime payouts based on different ages and payout options, so you can get a clear picture of what your retirement income might look like.
While exact payouts vary depending on factors like your age, gender, and whether you choose a single or joint life policy, these estimates offer a helpful starting point for planning your financial future.
Monthly Payouts for $1 Million Immediate Lifetime Annuity
| Age | Male | Female | Joint Life |
| 60 | $5,990 | $5,821 | $5,369 |
| 65 | $6,530 | $6,285 | $5,710 |
| 70 | $7,343 | $6,979 | $6,211 |
| 75 | $8,597 | $8,012 | $6,924 |
| 80 | $10,508 | $9,654 | $8,057 |
This chart illustrates how much monthly income you could receive from a $1 million immediate annuity based on your age and the payout structure you select. These examples assume payments begin right away and continue for the rest of your life.
- Single Life annuities provide payments for as long as the annuitant is living.
- Joint Life annuities continue to pay out until both spouses (assumed to be the same age) have passed.
Generally, older buyers receive higher monthly income because the insurer anticipates making payments over a shorter time period. Men often receive slightly more than women due to differences in life expectancy, and joint annuities provide lower monthly payouts to account for the longer average duration of two lives combined.
These payout structures help balance the tradeoff between income security and longevity risk, making them a valuable planning tool for individuals and couples nearing retirement.
Annual Percentage* Payouts for $1 Million Immediate Lifetime Annuity
| Age | Male | Female | Joint Life |
| 60 | 7.20% | 7.00% | 6.46% |
| 65 | 7.84% | 7.56% | 6.87% |
| 70 | 8.81% | 8.39% | 7.47% |
| 75 | 10.32% | 9.63% | 8.32% |
| 80 | 12.61% | 11.58% | 9.67% |
The chart above shows how much annual income you might receive from a $1 million annuity, depending on your age and whether you choose a single or joint life payout. The payout rate is not the same as an interest rate. It represents the percentage of your original investment paid out each year, combining both principal and interest.
For example, a 75-year-old male could receive a payout rate of 10.32%, or roughly $103,164 per year (about $8,597/month).
These rates help you compare income options when deciding how to turn your savings into reliable retirement income.
What a $1 Million Annuity Looks Like in Practice
It’s one thing to understand annuity payouts in theory, but it’s another to see how they actually work in practice. When you invest $1 million in an annuity, your monthly income can vary widely depending on your age, retirement goals and the type of payout you choose.
The real-world examples below show how different individuals and couples turn a $1 million investment into reliable income. Whether you’re preparing to retire, looking to protect a spouse, or aiming for guaranteed payments you can’t outlive, these scenarios can help you see how an annuity might fit into your own financial picture.
Meet Bob — Turning His Savings Into Income for Life
Name: Bob
Age: 70
Looking to Invest: $1,000,000
- Wants reliable income for the rest of his life
- Already retired and not concerned with leaving funds to heirs
- Prefers simplicity — no riders or extras
Monthly Payout: $7,344
At age 70, Bob has officially retired and is ready to convert a portion of his nest egg into guaranteed monthly income. He wants to ensure he’ll never have to worry about outliving his savings, and he’s comfortable using $1 million to generate payments for life.
To meet this goal, Bob purchases a single premium immediate annuity (SPIA) with a life-only payout structure.
Why He Chose a Life-Only Annuity:
Bob opted for a straight lifetime annuity with no death benefit or period certain. This choice provides the highest possible monthly income, which is what matters most to him — even though it means his beneficiaries won’t receive anything if he passes away early.
His estimated monthly income is approximately $7,344, or $88,128 per year, guaranteed for the rest of his life.
What This Strategy Gives Him:
- A stable monthly payout he can depend on
- No exposure to market fluctuations
- The confidence to spend in retirement without second-guessing
I worked hard to build my savings. Now I want that money to work for me without the stress of managing investments.
Bottom Line: Bob’s strategy prioritizes maximum monthly income and long-term stability over leaving money behind. It’s a simple, no-frills plan that gives him the peace of mind he’s looking for in retirement.
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Meet Linda: Planning Ahead with Guaranteed Retirement Income
Name: Linda
Age: 65
Looking to Invest: $1,000,000
- Wants dependable lifetime income in retirement
- Prioritizes stability over investment risk
- Interested in securing her own financial independence
Monthly Payout: $6,297
Linda is 65, recently retired, and ready to turn part of her nest egg into predictable monthly income. Like many retirees, her goal is to create a steady stream of payments she can’t outlive, without relying on the ups and downs of the market.
She uses $1 million to purchase a single life immediate annuity, which begins paying her shortly after the contract is issued.
Although Linda and Bob both invested $1 million in immediate lifetime annuities, her monthly payout is about $1,000 lower because she is younger (65 vs. 70) and female — two factors that increase life expectancy and lead insurers to spread payments over a longer expected period.
What This Strategy Gives Her:
- Monthly income of approximately $6,297
- Stability and peace of mind — regardless of market conditions
- Confidence to enjoy retirement without overspending
I wanted to ensure my income wouldn’t run out, no matter how long I live. This annuity gives me that certainty.
Bottom Line: Linda’s annuity gives her guaranteed monthly income for life, tailored to her unique needs. While her payout is lower than someone older or male, it reflects the added benefit of longevity protection — something she values deeply in her retirement plan.
For a 65-year-old woman investing $1 million, receiving a guaranteed $6,297 per month is a great strategy for retirement planning, as you can rely on that income throughout your lifetime. The good news is that annuities offer a secure method of generating predictable income during retirement. There’s no market risk or fees involved, just a fixed amount of income over a specific timeframe, which is why retirees appreciate them.
Aamir M. Chalisa, MBA, LUTCF, MDRTGeneral Manager at Futurity First Insurance GroupAamir M. Chalisa is the GM at Futurity First, leading Oak Brook’s top branch. With 30+ years’ expertise, chairs GAMA Global, driving diversity worldwide.
Scenario 3 – George and Martha
Name: George and Martha
Age: 65 and 65
Looking to Invest: $1,000,000
- Want lifetime income for both spouses
- Looking for peace of mind knowing income won’t stop after one spouse passes
- Comfortable with a slightly lower monthly payout in exchange for shared protection
Monthly Payout: $5,722
George and Martha are both 65 and planning to retire together. They’ve saved diligently and want to use part of their nest egg to create guaranteed monthly income — not just for one of them, but for as long as either is living.
They invest $1 million in an immediate annuity with a joint life payout, ensuring payments will continue even if one spouse passes away.
What This Strategy Gives Them:
- Shared income security for the rest of their lives
- Protection against financial hardship for the surviving spouse
- Freedom to enjoy retirement without second-guessing their budget
We’ve always planned our future together. It made sense to choose an income option that supports both of us — no matter what happens.
Bottom Line: This joint life annuity ensures that George and Martha won’t outlive their income — individually or as a couple. It’s a strategic choice for anyone prioritizing shared financial protection in retirement.
Today’s Best Fixed Annuity Rates by Term
| Term | Rate | Provider | Product | AM Best Rating |
|---|---|---|---|---|
| 1 Year | 6.74% | Corebridge Financial | American Pathway Fixed 7 Annuity | A |
| 2 Years | 5.50% | Axonic Insurance Services | Skyline MYGA | A- |
| 3 Years | 6.10% | Wichita National Life Insurance | Security 3 MYGA | B+ |
| 4 Years | 6.05% | Mountain Life Insurance Company | Alpine Horizon | B+ |
| 5 Years | 6.45% | Atlantic Coast Life | Safe Harbor Bonus Guarantee | B+ |
| 6 Years | 6.67% | Atlantic Coast Life | Safe Harbor Bonus Guarantee | B+ |
| 7 Years | 6.90% | Atlantic Coast Life | Safe Harbor Bonus Guarantee | B+ |
| 8 Years | 6.00% | Mountain Life Insurance Company | Secure Summit | B+ |
| 9 Years | 5.40% | Mountain Life Insurance Company | Secure Summit | B+ |
| 10 Years | 7.65% | Atlantic Coast Life | Safe Harbor Bonus Guarantee | B+ |
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Factors That Impact How Much a $1 Million Annuity Pays Monthly
Annuity providers calculate payouts differently for every annuity contract. An annuity with a $1 million premium can have widely varying monthly payments depending on several factors.
- Annuitant’s age: Life expectancy factors into annuity payout calculations because the longer you live, the more payments you’ll receive. So the older you are when you start getting payments from your annuity, the higher your payments will be.
- Annuitant’s gender: Because women tend to live longer than men, they usually receive lower monthly payouts than men of the same age would.
- Payout period: As mentioned, the longer the insurance company expects to pay out your annuity, the lower your monthly payments will be. An annuity that only pays out for a set period, like 10 years, will have higher monthly payments than a lifetime annuity, and a lifetime annuity will have higher payouts than a joint and survivor annuity that covers two lifetimes.
- Type of annuity: Calculating payouts on an immediate annuity is relatively simple because the contract starts paying out right away. Other types of annuities accumulate value, either through equity subaccounts, index crediting or a fixed interest rate. With these annuities, the payout cannot be calculated without knowing the value of the contract when it converts to income.
- Riders: Some contract provisions and riders that owners add to their annuities can lower the monthly payment amount of the contract. Riders like a return of premium rider or a death benefit rider can represent a greater risk to the insurer, so payment amounts may be lowered to offset that risk.
