Annuities can give you some sort of income when you retire, but your payout amount can differ based on several factors. First, your age does matter. If you purchase an annuity when you are older, then your payment will be higher.
Other factors that go into your payout amount include your gender, the amount you initially invested, interest rates, your life expectancy and the annuity type you chose.
Monthly Payouts for $300,000 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 |
As is typical with other annuities, the older you are when you start receiving payouts, the larger your payouts will be. This is because, the longer you wait, the fewer number of payouts you will receive. This is a smart thing to do if you are someone who has another income stream, like Social Security or Supplemental Security Income payments.
Gender also matters, with females bringing in less money than males of the same age. This is due to the fact that men have shorter life expectancies than women, so annuity companies know they will most likely need to provide payouts for a woman longer than a man of the same age. According to the chart above, if you are an 80-year-old man, your monthly payouts would be around $2,641. However, for a female who is also 80 years old, that payout would only be $2,425 per month. If you have a joint life annuity, it would be closer to $2,023 per month, since the annuity is covering two lifetimes and not just one.
Annual Percentage* Payouts for $300,000 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% |
The payout rates above include both interest and return of principal. The rates represent the annualized payout as a percent of the total premium. The payout rate is not an interest rate.
Real-World Examples: Carmen, Richard & Sydney
Understanding how annuity payouts work in theory is useful — but seeing them in action can make the impact much clearer. Factors like your age, retirement goals, and payout option can significantly shape the income you receive each month.
The examples below show how various retirement scenarios can influence annuity payouts. They’re designed to help you visualize how an annuity could support your own financial plan — whether you’re approaching retirement, looking for guaranteed income, or planning to provide for a spouse.
Meet Carmen — Turning Retirement Savings Into Reliable Lifetime Income
Name: Carmen
Age: 65
Looking to Invest: $300,000
- Wants protection against the risk of outliving her savings in retirement
- Purchases an immediate annuity with a lifetime payout
Monthly Payout: $1,798
Carmen has recently retired and is looking for a dependable income stream to cover her essential expenses now that she’s no longer working. She invests $300,000 in an immediate annuity, which begins paying her $1,798 per month — about $21,575 a year — for the rest of her life.
Why She Chose a Lifetime Income Annuity
Carmen selects the “life-only” option, which provides the highest monthly payout but does not include a period certain or death benefit. She prioritizes maximizing her income during retirement over leaving a financial legacy.
Her payments begin shortly after the contract is issued, giving her confidence that her essential living costs will be covered without needing to dip into other savings.
Why This Works for Carmen:
- Payments are guaranteed for life, regardless of market performance.
- Her monthly income will never run out, even if she lives for decades.
- She can budget around a predictable income stream.
- She doesn’t have to manage investments or worry about market downturns.
I wanted peace of mind knowing my bills will always be covered. This way, I can focus on enjoying retirement without financial stress. – Carmen
Bottom Line: Carmen’s estimated monthly income from her annuity is about $1,798 — guaranteed for life. If she passes away before collecting the full value of her premium, the remaining balance will stay with the insurer, but the assurance of steady income for as long as she lives makes the trade-off worthwhile for her.
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Meet Richard — Maximizing Retirement Income Later in Life
Name: Richard
Age: 75
Looking to Invest: $300,000
- Wants to create a guaranteed income stream for the rest of his life
- Purchases an immediate lifetime income annuity
Monthly payout: $2,501
At age 75, Richard invests $300,000 in an immediate annuity to provide reliable lifetime income. His annuity pays $2,501 a month — about $30,013 a year — which is roughly $700 more each month than Carmen, who is ten years younger.
Why He Receives a Higher Payout
Annuity payouts are calculated using life expectancy. Because Richard is older, the insurance company expects to make payments for fewer years, allowing for a higher monthly amount. Gender also plays a role — men tend to have shorter life expectancies than women, which can increase payouts further. For example, a 75-year-old woman with the same investment might receive $2,319 a month instead.
Why This Works for Richard:
- Larger monthly income due to shorter expected payout period.
- Guaranteed lifetime payments that won’t change with market swings.
- Reliable income stream without the need to manage investments.
- Freedom to use more of his money while he’s active and enjoying retirement.
I wanted the most income I could get now, so I can make the most of my retirement years without worrying about the market. – Richard
Bottom Line: Richard’s estimated monthly income from his annuity is about $2,501 — guaranteed for life. While his payments won’t go to heirs if he passes away early, the higher monthly income allows him to enjoy a comfortable and secure retirement.
I think payout annuities will surge in popularity. The financial industry is good at asset accumulation but not at decumulation—converting assets into income. While there are strategies for withdrawal rates, immediate annuities offer pension-like payouts, giving retirees confidence they won’t outlive their money.
Paul Garofoli, FLMI, RICP®Regional Vice President for Individual Annuities at Standard Insurance CompanyPaul Garofoli, with 40+ years of industry expertise, serves as the Regional Vice President for Individual Annuities at Standard Insurance Company. A notable advocate, he was elected to the Board of Directors for NAFA. Garofoli holds a Bachelor’s in Political Science and Economics from the University of Massachusetts Amherst. Over 40 years of industry experience Regional Vice President for Individual Annuities at Standard Insurance Company Elected to the Board of Directors for the National Association for Fixed Annuities (NAFA)
Meet Sydney — Balancing Lifetime Income With a Legacy for Her Beneficiary
Name: Sydney
Age: 75
Looking to Invest: $300,000
- Wants guaranteed income for life and a way to leave payments to her beneficiary if she passes away sooner than expected
- Purchases an immediate life annuity with a 10-year period certain.
Monthly payout: $2,206
Sydney invests $300,000 in an immediate annuity designed to pay her $2,206 each month — or $26,472 a year — for life. She also chooses a 10-year period certain, which guarantees payments will continue to her beneficiary if she dies within the first decade of the contract.
Why She Chose a Period Certain Annuity
The period certain feature ensures that at least $263,280 in total payments will be made, even if Sydney passes away early. This protection for her beneficiary comes with a trade-off: because the insurance company takes on more risk by guaranteeing payments for a set period, the monthly payout is lower than it would be with a “life-only” option. For example, without the period certain guarantee, Sydney’s monthly income could be as high as $2,319.
Why This Works for Sydney:
- Provides predictable, guaranteed income for life.
- Ensures her beneficiary will receive payments if she passes away within the first 10 years.
- Offers peace of mind knowing she can both enjoy her retirement and leave a financial legacy.
- Protects her against outliving her savings.
I want to know my needs will be met for life — and that my loved ones will be taken care of if I’m not here. – Sydney
Bottom Line: Sydney’s estimated monthly income is about $2,206 — guaranteed for life, with at least 10 years of payments assured. While her monthly payout is slightly lower than a life-only option, the added security for her beneficiary makes this choice the right fit for her.
My clients prefer annuities with income riders for predictable retirement income, as they can lock in a guaranteed monthly amount. This eliminates the risk of market fluctuations. For a recent client with $300K to invest and a need for immediate income, I compared an immediate annuity with a fixed index annuity (FIA) that included an income rider. The FIA with a Lifetime Income Benefit Rider (LIBR) performed better, offering $22K annually for life, based on his age and investment horizon. It also gave him the flexibility to access his principal in the future if needed. This strategy helps him supplement Social Security and meet his financial goals with certainty.
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 | 5.55% | 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 $300,000 Annuity Pays per Month
Several factors can influence the payout of an annuity.
Payout Factors for Annuities
- Annuitant’s life expectancy: The age and sex of the contract’s annuitant play a major role in payout calculations because insurance companies use this information to determine life expectancy. The longer you’re expected to live, the lower your payments will be, so women and younger people tend to receive lower monthly payouts.
- Payout period: The insurance company also factors in any guarantees in the contract for how long payments must continue. For example, a single life annuity will have higher payments than a joint life annuity that covers two people’s lifetimes.
- Type of annuity: Immediate annuities are the simplest type of annuity and therefore have the most predictable payouts. Most other types of annuities undergo an accumulation phase before converting to income, making returns more difficult to calculate in advance.
- Riders: A key advantage of annuities is the ability to customize a contract with riders at an additional cost. Riders like a return of premium or cost of living adjustment rider influence the annuity’s payout, as these represent additional risk to the annuity issuer.
The premium amount is one of the most important elements, as it’s usually the starting point of any annuity calculation. However, even annuities with the same premium amount can have very different monthly payouts, as the case study scenarios show.
Editor Norah Layne contributed to this article.
