Key Takeaways
- A $50,000 annuity could pay $302 a month for a 65-year-old woman purchasing an immediate single life annuity.
- Annuity providers calculate the monthly payout of a $50,000 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 because women live longer.
- Immediate, indexed, fixed and variable annuities are all products that can provide income and may have riders that offer lifetime income. Planning for retirement with an advisor is the key component in deciding which of these to buy.
- You’ve worked your entire life to save and accumulate funds. Make sure you invest them in the right product so that your retirement goals are satisfied.
Annuity.org 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 $50,000 annuity.
The estimates shown are for an immediate $50,000 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 $50,000 Immediate Life Annuity
| Age | 55 | 60 | 65 | 70 | 75 | 80 |
| Male Single Life | $267 | $288 | $317 | $358 | $419 | $514 |
| Female Single Life | $259 | $277 | $302 | $338 | $389 | $471 |
| Joint Life | $241 | $254 | $272 | $299 | $336 | $393 |
Typically, with income annuities, retirees will put more than $50,000 into an annuity. However, if you are looking to supplement your income or cover a smaller monthly recurring bill, then a $50,000 annuity may be a good option. When people are looking to retire, they will reach out to me, and we will go through an income needs analysis, including inflation, to determine exactly how much funding is needed for the required income.
John Stevenson, CFFOwner and Advisor at Stevenson Retirement SolutionsJohn Stevenson, a Certified Financial Fiduciary®️, specializes in securing retirements with tax-free accounts. With a focus on guaranteed retirement, he’s ensured none of his clients suffer from market fluctuations. As a renowned educator and podcast host, John empowers thousands weekly, sharing his expertise in minimizing taxes and protecting against financial downturns.
Certified Financial Fiduciary®️
Host of the popular Guaranteed Retirement podcast and YouTube channel
Studied Finance and Business
Case Studies
To understand how different factors impact the approximate payout of a $50,000 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 and online annuity calculators.
Scenario 1 – Chris
Name: Chris
Age: 65
Looking to Invest: $50,000
- Chris wants a guaranteed income stream for life
- He purchases an immediate annuity with a lifetime payment
Monthly Payout: $317
In the example above, Chris has recently retired and wants another income stream to supplement Social Security and his other retirement savings. An immediate annuity converts his $50,000 into payments of $317 each month.
This estimation assumes that Chris selected a single life policy, which continues payments until his death. The single life policy means that the contract has no death benefit; if Chris passes away before he receives the full return of his annuity premium, his beneficiaries will not receive the unpaid premium remainder.
Scenario 2 – Eva
Name: Eva
Age: 60
Looking to Invest: $50,000
- Eva wants a guaranteed income stream for life
- She purchases an immediate annuity with a lifetime payment
Monthly Payout: $277
Eva’s circumstances are very similar to Chris’ in the first scenario; she’s retiring and wants to start receiving guaranteed income for the rest of her life. Eva purchases the same type of annuity – an immediate annuity with a lifetime payout – and pays the same premium amount.
In this case, Eva’s $50,000 annuity pays out an estimated $277 a month. Eva’s payout is lower than Chris’ for two reasons. First, Eva’s payments begin when she is 60, and the younger you are when you start receiving income from your annuity, the lower your payments will be. If Eva purchased the annuity at age 65, her annuity might pay $302 a month.
Eva’s payments are also lower than Chris’ because Eva is female. Women typically receive slightly lower income payments because they have a longer life expectancy. A 60-year-old man purchasing a $50,000 immediate annuity could receive a payout of approximately $288.
Scenario 3 – Steve
Name: Steve
Age: 62
Looking to Invest: $50,000
- Steve wants to grow his savings before turning them into income
- He purchases a 3-year fixed annuity with a 6% interest rate
Monthly Payout: $461
Steve’s scenario differs from Eva and Chris’s because he’s not ready to receive income yet. Because Steve has a few years before he plans to retire and start getting annuity payments, he purchases a fixed annuity. When his $50,000 annuity matures, he’ll receive a payout of roughly $461 a month.
Steve purchased a multi-year guaranteed annuity or MYGA, which earns a guaranteed interest rate — in this case, 6% — for the length of the contract. His payout is much higher than the other two scenarios because his $50,000 premium had the chance to grow before converting to income.
Factors Impacting How Much a $50,000 Annuity Pays Per Month
Annuity providers calculate payouts differently for every annuity contract. An annuity with a $50,000 premium can have widely varying monthly payments depending on several factors.
- Annuitant’s age: Insurers use the annuitant’s life expectancy to calculate annuity payouts. The longer you’re expected to live, the more payments the insurer expects to pay out, so your payments will be shorter.
- Annuitant’s gender: Women tend to live longer than men, so a 75-year-old woman will receive slightly smaller annuity payments than a 75-year-old man.
- Type of annuity: The type of annuity can impact the annuity’s value at annuitization, which is used to calculate the payout amount. A $50,000 deferred annuity that earns interest will produce higher payouts than a $50,000 immediate annuity that starts paying out right away.
- Payout period: As previously stated, the longer you’re expected to receive payments, the smaller the payment amount will be. A 10-year period certain annuity will likely have a higher payout than a lifetime annuity. A $50,000 joint and survivor annuity that covers two lifetimes will have a lower payout than a single life annuity of the same amount.
- Riders: You can customize your annuity with riders and provisions, but these may affect your payout amount. For example, a return of premium rider or death benefit represents a greater level of risk to the insurer, so your payout amount will likely be slightly lower each month if you opt for these features.
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