How Much Does a $1 Million Annuity Pay Per Month?

A $1 million lifetime annuity could pay as much as $6,073 a month for a 65-year-old woman purchasing an immediate annuity. The monthly payout of a $1 million annuity depends on several factors, including when payments start, the length of distribution, and the annuitant’s age and gender.

Headshot of Jennifer Schell, writer for
  • Written By
    Jennifer Schell, CAS®

    Jennifer Schell, CAS®

    Financial Writer, Certified Annuity Specialist®

    Jennifer Schell is a professional writer focused on demystifying annuities and other financial topics including banking, financial advising and insurance. She is proud to be a member of the National Association for Fixed Annuities (NAFA) as well as the National Association of Insurance and Financial Advisors (NAIFA).

    Read More
    Marguerita M. Cheng, CFP®, CRPC®, CSRIC®, RICP®

    Marguerita M. Cheng, CFP®, CRPC®, CSRIC®, RICP®

    CEO of Blue Ocean Global Wealth

    Marguerita M. Cheng, CFP®, CRPC®, CSRIC®, RICP®, is the chief executive officer at Blue Ocean Global Wealth. As a CFP Board of Standards Ambassador, Marguerita educates the public, policymakers and media about the benefits of competent and ethical financial planning. She is a past spokesperson for the AARP Financial Freedom campaign.

    Read More
  • Edited By
    Lamia Chowdhury
    Headshot of Lamia Chowdhury, editor for

    Lamia Chowdhury

    Financial Editor

    Lamia Chowdhury is a financial editor at Lamia carries an extensive skillset in the content marketing field, and her work as a copywriter spans industries as diverse as finance, health care, travel and restaurants.

    Read More
  • Financially Reviewed By
    Aamir M. Chalisa, MBA, LUTCF, MDRT
    Aamir M. Chalisa, MBA, LUTCF, MDRT

    Aamir M. Chalisa, MBA, LUTCF, MDRT

    General Manager at Futurity First Insurance Group

    Aamir M. Chalisa is the GM at Futurity First, leading Oak Brook's top branch. With 30+ years' expertise, chairs GAMA Global, driving diversity worldwide.

    Read More
  • Updated: April 30, 2024
  • 5 min read time
  • This page features 4 Cited Research Articles

Key Takeaways

  • A $1 million annuity could pay $6,073 a month for a 65-year-old woman purchasing an immediate single life annuity.
  • Annuity providers calculate the monthly payout of a $1 million annuity based on factors such as the type of annuity and the annuitant’s age and gender.
  • The older you are when you start to receive payments, the larger those payments will be, and men’s payments will be larger than women’s since women live longer. used data from Cannex, an independent company that provides access to a database of updated annuity products, to calculate the expected monthly payments of a $1 million annuity.

The estimates shown are for an immediate $1 million annuity with lifetime payments. The payouts listed for a joint annuity with a male and female spouse assume that both spouses are the same age and that payments remain level if either spouse is alive.

Monthly Payouts for $1 Million Immediate Lifetime Annuity

Age 55 60 65 70 75 80
Male Single Life $5,339 $5,742 $6,313 $7,110 $8,301 $10,166
Female Single Life $5,208 $5,569 $6,073 $6,764 $7,756 $9,312
Joint Life $5,488 $5,110 $5,488 $6,010 $6,740 $7,852
Step 1
Step 2
Step 3
Step 4

How soon are you retiring?

Step 1
Step 2
Step 3
Step 4

What is your goal for purchasing an annuity?

Select all that apply

For a 65-year-old woman investing $1 million, receiving a guaranteed $6,073 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.

Case Studies

To understand how different factors impact the approximate payout of a $1 million annuity, let’s look at three different scenarios. These case studies represent hypothetical estimates and are meant to give you a general idea of how different customers might receive different payouts for the same premium amount.

These payout estimates were calculated using Cannex data. 

Scenario 1 – Bob

Icon of Bob for case study

Name: Bob

Age: 70

Looking to Invest: $1,000,000

  • Bob wants a guaranteed income stream for life
  • He purchases an immediate annuity with a lifetime payment

Monthly Payout: $7,110

Bob has retired and wants to turn his savings into a guaranteed stream of income he can’t outlive. He purchases a $1,000,000 immediate annuity that pays approximately $7,110 a month.

The estimated payout of Bob’s annuity assumes that he chose a straight life annuity with no period certain and no death benefit. This means Bob’s annuity will pay out until he passes away, at which point, the insurance company will keep the remaining premium and his beneficiaries will not receive the remaining amount of the annuity payments.

Scenario 2 – Linda

Icon of Linda for case study

Name: Linda

Age: 65

Looking to Invest: $1,000,000

  • Linda wants guaranteed income in retirement
  • She purchases an immediate annuity with a lifetime payment

Monthly Payout: $6,073

Linda’s circumstances are in many ways similar to the previous scenario. She’s a retiree who purchases an immediate lifetime annuity to set up guaranteed income she can’t outlive. However, Linda’s $1,000,000 annuity pays $6,073 a month, over $1,000 less than what Bob’s annuity pays.

Linda gets a lower payout from her annuity because the insurance company expects her to live longer. The younger you are, the smaller your payments will be. Women also have higher life expectancies than men, so women tend to get lower monthly payments than men. A 65-year-old man who purchases a $1,000,000 immediate annuity might receive $6,313 monthly.

Scenario 3 – George and Martha

Icons of couple for case study

Name: George and Martha

Age: 65 and 67

Looking to Invest: $1,000,000

  • George and Martha want guaranteed income that lasts for both their lifetimes
  • They purchase an immediate annuity with a joint life payout

Monthly Payout: $5,583

George and Martha purchase an immediate annuity to generate income for their retirement. The annuity they buy is called a joint and survivor annuity, and it guarantees payments as long as either George or Martha is alive.

Joint and survivor annuities tend to have lower payouts than single life annuities because they are likely to pay out for longer. In this example, George and Martha’s $1,000,000 annuity pays an estimated $5,583 a month.

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.
Please seek the advice of a qualified professional before making financial decisions.
Last Modified: April 30, 2024
Annuity agent on a phone call
Learn About Top Annuity Products Get a Free Annuity Quote from a Licensed Agent
Annuity rates on a screen
Find Today's Best Annuity Rates Compare Today's Best Annuity Rates
Mockup of laptop with annuity calculator page displayed
Calculate Your Annuity Payout Calculate Your Annuity Payout