Annuities can ensure you have income once you retire. However, the amount you receive each month depends on many factors, including your gender and age. For example, if you purchase an annuity at an older age, then your payment will be higher.
The data below helps clarify your potential annuity payments. Understanding these figures is key to securing a stable financial future, particularly if you’re considering how a $250,000 annuity can work within your retirement plan.
Monthly Payouts for $250,000 Immediate Lifetime Annuity
| Age | Male | Female | Joint Life |
| 60 | $1,633 | $1,458 | $1,345 |
| 65 | $1,633 | $1,574 | $1,430 |
| 70 | $1,835 | $1,747 | $1,555 |
| 75 | $2,151 | $2,006 | $1,734 |
| 80 | $2,641 | $2,425 | $2,023 |
Looking at the chart above, you can see that men, no matter their age, will always receive a higher payout. This is because men typically have shorter life expectancies than women. Joint life policies will always have the lowest amount since they are for two people instead of one.
This data has also shown that as you get older, your payout will increase. If you wait longer to start taking payouts from your annuity, it will grow more money while in the tax-deferred stage. If you are working part-time or have another type of income, it could be a good decision to wait as long as possible before receiving your annuity payouts.
Annual Percentage* Payouts for $250,000 Immediate Lifetime Annuity
| Age | Male | Female | Joint Life |
| 60 | 7.84% | 7.00% | 6.46% |
| 65 | 7.84% | 7.56% | 6.86% |
| 70 | 8.81% | 8.39% | 7.46% |
| 75 | 10.32% | 9.63% | 8.32% |
| 80 | 12.68% | 11.64% | 9.71% |
Real-World Examples: Ellie, Nate, Janelle and Victor
The following three scenarios illustrate how different factors influence the payout of a $250,000 annuity. These case studies use hypothetical estimates to give you a general idea of how different customers might receive different payouts for the same premium amount. We used Cannex data to calculate these payout estimates.
Meet Ellie — Securing Lifetime Income in Retirement
Name: Ellie
Age: 65
Looking to invest: $250,000
- Ellie wants guaranteed income she can’t outlive.
- She purchases an immediate annuity with a single life payout.
Monthly payout: $1,574
Ellie has recently retired and is focused on protecting her income for the years ahead. She invests $250,000 in an immediate single life annuity, which provides $1,574 a month — about $18,888 a year — for as long as she lives.
Why She Chose a Single Life Annuity
Ellie’s annuity is designed to maximize her monthly payments, which means it does not include a period certain or death benefit. If she passes away before collecting the full value of her premium, no payments will be made to her beneficiaries. She prioritizes higher income now over leaving a financial legacy.
Why This Works for Ellie:
- Guaranteed monthly income for life.
- Higher payout than options with death benefits or period certain guarantees.
- No need to manage investments or worry about market volatility.
- Confidence that her essential expenses will be covered in retirement.
I wanted to know I’d have income I could depend on for the rest of my life, without worrying about the ups and downs of the market. – Ellie
Bottom Line: Ellie’s estimated monthly income from her annuity is about $1,574 — guaranteed for life. While it doesn’t provide a payout to heirs, the higher monthly income gives her financial stability and peace of mind throughout retirement.
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Meet Nate — Boosting Income by Purchasing Later in Life
Name: Nate
Age: 68
Looking to Invest: $250,000
- Nate wants a guaranteed income stream in retirement.
- He purchases an immediate annuity with a lifetime payout.
Monthly payout: $1,685
Nate invests $250,000 in an immediate lifetime annuity, which pays him $1,685 a month — about $20,220 a year. Even though he invested the same amount as Ellie, his monthly payout is higher.
Why His Payout Is Higher
Annuity payouts are based on life expectancy. The older you are when you purchase, the fewer years the insurance company expects to make payments — which increases the amount you receive each month. Nate’s gender also plays a role: men generally have shorter life expectancies than women, which can lead to higher payouts. For example, a 68-year-old woman making the same purchase might receive about $1,593 per month.
Why This Works for Nate:
- Higher monthly income due to shorter expected payout period.
- Guaranteed lifetime payments that won’t fluctuate with the stock market.
- Steady income stream without the need to manage investments.
- Ability to enjoy more income during his active retirement years.
I like knowing I’ll have more income now, while I’m still healthy and able to enjoy it. – Nate
Bottom Line: Nate’s estimated monthly income from his annuity is about $1,685 — guaranteed for life. While his payments won’t go to heirs if he passes away early, the larger monthly amount lets him make the most of his retirement today.
Meet Janelle and Victor — Ensuring Lifetime Income for Two
Names: Janelle and Victor
Ages: 70 and 70
Looking to Invest: $250,000
- Janelle and Victor want to ensure that neither of them outlives their retirement savings.
- They purchase a joint life annuity that guarantees payments for both of their lifetimes.
Monthly payout: $1,555
Janelle and Victor invest $250,000 in an immediate joint and survivor annuity, which pays $1,555 a month, about $18,660 a year, for as long as either one of them lives.
Why Their Payout Is Lower
Joint life annuities are designed to cover two lifetimes, so the insurance company expects to make payments for a longer period than it would with a single life annuity. As a result, the monthly payout is lower than what one person would receive for the same premium. Even though Janelle and Victor are slightly older than Nate, their monthly income is smaller because it’s guaranteed to continue until the second person passes away.
Why This Works for Janelle and Victor:
- Guaranteed income for life for both spouses.
- Peace of mind knowing the surviving partner will still receive income.
- Protection against one spouse outliving their shared savings.
- Steady, predictable payments regardless of market conditions.
“We wanted to know that whichever one of us lives longer will always have income coming in.”
Bottom Line: Janelle and Victor’s estimated monthly income from their annuity is about $1,555, guaranteed to last for both of their lifetimes. While the monthly payout is lower than a single life option, the security of knowing neither will lose income makes this the right choice for them.
My clients prefer annuities with income riders for predictable retirement income. I recently helped a client with $250K who wanted income right away. I compared an immediate annuity and a fixed index annuity (FIA) with a Lifetime Income Benefit Rider (LIBR). The FIA provided better results, offering $19K annually for life based on his age and investment horizon. He liked the predictable income and the option to access a lump sum in the future, helping him supplement Social Security and reach his financial goals.
Aamir Chalisa, MBA, LUTCF, MDRT
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 | 5.30% | Americo Financial Life and Annuity Insurance Company | Platinum Assure | A |
| 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 | 5.65% | EquiTrust Life Insurance Company | Certainty Select | B++ |
| 9 Years | 5.35% | Clear Spring Life and Annuity Company | Preserve Multi-Year Guaranteed Annuity | A- |
| 10 Years | 7.65% | Atlantic Coast Life | Safe Harbor Bonus Guarantee | B+ |
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Factors Impacting How Much a $250,000 Annuity Pays per Month
Annuity companies calculate payouts differently for every annuity contract.
Annuity Payout Factors
- Annuitant’s life expectancy: The person whose life expectancy determines an annuity’s payout is called the annuitant. The longer the insurance company expects an annuitant to live, the longer they have to pay out a lifetime annuity, so payments will be lower. This is why men and older people typically receive the highest monthly payments.
- Payout option: Lifetime annuities are popular, but they aren’t the only payout option for an annuity. You could opt to have an annuity pay out for a certain number of years; if that amount of time is less than the annuitant’s life expectancy, then the monthly payments might be higher than a lifetime annuity.
- Type of annuity: The payout calculations on this page assume that the customers are purchasing immediate annuities, but there are many other types of annuities to choose from. Most non-immediate annuities accumulate interest before converting into income payments, so the payout amounts for these products can be harder to predict.
- Riders: When you purchase an annuity, you can customize the contract with riders for an additional fee. The amount of your payouts can change depending on certain riders, such as a cost of living rider that increases the monthly payments by a small percentage each year to offset inflation.
The scenarios above illustrate some of the ways these factors influence the monthly payout of a $250,000 annuity.
Editor Norah Layne contributed to this article.
