How much does a $1 million annuity pay? When it comes to financial planning, one of the most important decisions you will make is how to invest your money. One option that many people consider is an annuity. An annuity can be a great way to secure your financial future and ensure a steady income stream in retirement. This guide will discuss how much money you can expect to receive from a $1,000,000 annuity.
“If you purchase your $1,000,000 annuity between the ages of 60 – 70 and start taking payments immediately, then you can expect to receive between $5,500 and $6,000 per month for the rest of your life.“
How Much Does A $1 Million Annuity Pay pay per month?
A $1,000,000 annuity would pay you approximately $5,677 each month for the rest of your life if you purchased the annuity at age 60 and began taking payments immediately. A 1 million dollar annuity would pay you approximately $6,146 each month for the rest of your life if you purchased the annuity at age 65 and began taking payments immediately. A $1,000,000 annuity would pay you approximately $6,458 each month for the rest of your life if you purchased the annuity at age 70 and began taking payments immediately.
How much does a $1,000,000 annuity pay starting Immediately?
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 1,319 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 $1,000,000 annuity will provide if the payouts start immediately. The longer you wait before starting the income, the higher the income amount will be.
$1,000,000 Annuity Immediate Payouts
| Age | Monthly | Annually |
|---|---|---|
| 55 | $4,687 | $56,250 |
| 56 | $4,739 | $56,875 |
| 57 | $4,791 | $57,500 |
| 58 | $4,875 | $58,500 |
| 59 | $4,983 | $59,800 |
| 60 | $5,083 | $61,000 |
| 61 | $5,191 | $62,300 |
| 62 | $5,291 | $63,500 |
| 63 | $5,400 | $64,800 |
| 64 | $5,500 | $66,000 |
| 65 | $5,608 | $67,300 |
| 66 | $5,708 | $68,500 |
| 67 | $5,816 | $69,800 |
| 68 | $5,916 | $71,000 |
| 69 | $6,025 | $72,300 |
| 70 | $6,125 | $73,500 |
How much income does a $1,000,000 annuity payout in the future?
The following table will estimate how much-guaranteed income a 1 million dollar annuity will pay out annually for the rest of a person’s life.
| Age | In 5 Years | In 10 years | In 20 Years |
|---|---|---|---|
| 40 | $155,065 | ||
| 45 | $173,757 | ||
| 50 | $130,615 | $190,869 | |
| 55 | $91,516 | $142,815 | $206,665 |
| 60 | $102,548 | $156,880 | |
| 65 | $112,647 | $169,864 | |
| 70 | $121,969 | $180,683 | |
| 75 | $130,375 |
When is the best time to buy an annuity for $1,000,000?
The best time to purchase an annuity is 5 to 10 years before the anticipated start date of monthly income withdrawals. After that, annuity rates can and do change. The longer you wait, the higher the income amount.
Next Steps
Want to know how much a $1 million annuity will pay you for the rest of your life? Annuities are the only retirement plan in the United States that provides a guaranteed income for a lifetime. Request a quote to determine how much income you could receive from a $1,000,000 annuity. Annuities can be an essential part of any retirement plan and provide peace of mind knowing that you will have a steady income stream no matter what happens in the future.
Use our annuity calculator to estimate your guaranteed retirement income for life. Then, please request a free quote from us.
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Frequently Asked Questions
How much does a $1,000,000 annuity pay per month?
The guaranteed monthly payments you will receive for the rest of your life are roughly $5,083 if you purchase a $1 million annuity at age 60. You will receive approximately $5,608 monthly at age 65 and approximately $6,125 each month at age 70 for the rest of your life. Of course, the longer you wait to receive payments, the bigger the payments will be.