Which Annuity Generates the Most Retirement Income? An Annuity Payout Comparison

Shawn Plummer

CEO, The Annuity Expert

So you are shopping for annuity payouts for your retirement and are not sure which product will generate you the highest annuity income.

You’ve come to the right place.

I ran a case study comparing various annuity types to see which product would generate the highest income in common retiree age brackets.

I compared Guaranteed Lifetime Withdrawal Benefit payouts and annuitized payouts from Immediate Annuities and Deferred Income Annuities (Longevity Annuities).

Income Annuities such as Immediate Annuities and Deferred Income Annuities require you to convert your retirement savings into an irrevocable income stream called annuitization.

In case you’re not aware, irrevocable means giving up all control of your money.

Deferred Annuities with Income Riders offer a guaranteed lifetime income that is revocable, which means some flexibility and control of your money. Fixed Indexed Annuities and Variable Annuities typically offer these optional features.

The income below is guaranteed based, not performance-based.

Client Profile

Gender: Male

Premium Amount: $100,000

State: Georgia

Annual Payment Frequency

Annuity Income Terms

Lifetime Income Payout Based on Single Life Payouts

Income Immediately

Income in Year 5

Income in Year 10

Income Annuities

Immediate Annuity and Deferred Income Annuity

Income Riders

Guaranteed Lifetime Withdrawal Benefits

Flexible vs. Annuitizing Income

Is annuitizing your retirement accounts really worth giving up all the control of your savings?

As you can see, the annuity payouts are very similar, and in some cases, the income rider payouts are higher and more flexible.

You be the judge.

An income annuity is typically recommended to you because that’s the only option the advisor or agent has due to their limited product portfolio.

“Big Box” or Brick and Mortar advisory shops can only offer certain products to you, which ultimately limits your retirement income.

Income annuities do have a place in this world, but I rarely recommend giving up all control of your money in exchange for a few more dollars or, worse yet, receiving less money.

At the end of the day, generating the highest retirement income for you is the name of the game.

It’s up to you whether you want flexibility or not.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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