Regarding annuities, most people are only concerned with the payout size. How much money will I get each month? How much will I get in retirement? These are valid questions that need to be answered before you decide whether or not an annuity is right for you. In this guide, we will look at a $500,000 annuity and see how much you can expect to receive each year.
How much does a $500,000 annuity pay per month?
A $500,000 annuity would pay you approximately $2,188 each month for the rest of your life if you purchased the annuity at age 60 and began taking payments immediately. A 500,000-dollar annuity would pay you approximately $2,396 each month for the rest of your life if you purchased the annuity at age 65 and began taking payments immediately. A $500,000 annuity would pay you approximately $2,605 each month for the rest of your life if you purchased the annuity at age 70 and began taking payments immediately.
What Is The Payout From Annuities For $500,000?
Annuities are an investment tool that provides a stable, lifelong income. Annuity payments vary according to the buyer’s age and how much time is left before annuitants take a payout.
Using annuity calculators and quoting software, I researched 1319 annuity products and 307 income riders from 61 top insurance companies to determine how much annual income would be paid.
This is the payout table you want to use if you are already retired or retiring soon. It shows the annual income the $500,000 annuity will provide if the payout starts immediately. The longer you wait before starting the income, the higher the income amount will be.
$500,000 Immediate Payouts
| Age | Monthly | Annual |
|---|---|---|
| 55 | $2,058 | $24,690 |
| 56 | $2,110 | $25,315 |
| 57 | $2,162 | $25,940 |
| 58 | $2,214 | $26,565 |
| 59 | $2,266 | $27,190 |
| 60 | $2,318 | $27,815 |
| 61 | $2,370 | $28,440 |
| 62 | $2,422 | $29,065 |
| 63 | $2,474 | $29,690 |
| 64 | $2,526 | $30,315 |
| 65 | $2,578 | $30,940 |
| 66 | $2,630 | $31,565 |
| 67 | $2,683 | $32,190 |
| 68 | $2,735 | $32,815 |
| 69 | $2,787 | $33,440 |
| 70 | $2,839 | $34,065 |
How Much Would A $500,000 Annuity Pay In The Future?
The following table will estimate how much guaranteed income a $500,000 annuity will pay out annually for the rest of a person’s life.
| Age | In 5 Years | In 10 years | In 20 Years |
|---|---|---|---|
| 40 | $63,084 | ||
| 45 | $68,063 | ||
| 50 | $53,110 | $77,851 | |
| 55 | $38,938 | $58,680 | $86,400 |
| 60 | $43,313 | $63,213 | |
| 65 | $47,688 | $69,561 | |
| 70 | $52,063 | $72,563 | |
| 75 | $56,438 |
When is the Best Time to Buy an Annuity For $500,000?
The best time to purchase an annuity is 5 to 10 years before the anticipated start date of monthly income withdrawals. The longer an annuitant waits, the higher the income amount will be. Annuity rates can and do change.
Calculate a $500,000 Annuity Payout
On our annuity calculators page, you’ll find 17 different calculators to help generate quotes for an annuity.
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Next Steps
Request a quote to determine how much income you can receive from a $500,000 annuity. This guide has shown that an annuity is the only retirement plan in the United States that provides a guaranteed lifetime income. By understanding how annuities work, you can be confident that you are making the best decision for your future.
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