In this guide, I’ll compare the top-paying annuity plans in November 2020. The results will be divided into two categories, annuitized income from income annuities and guaranteed lifetime withdrawals from income riders.
Annuity Types To Generate Income During Retirement
Annuities generate guaranteed lifetime income during retirement in 2 distinct ways: Annuitized Annuity Payments or Guaranteed Lifetime Withdrawals.
Income Annuities: Income generated from these annuities is irrevocable which means annuity owners lose ALL control of the assets, and there are no refunds. Once the income is started, there is no turning back. Income annuity plans include:
Income Riders: Income riders (Guaranteed Lifetime Withdrawal Benefit) generate a paycheck during retirement for the retiree’s entire lifetime(s) even if there is zero money left in the annuity. These lifetime withdrawals are flexible and can be turned off and on at any time. These annuity plans include:
The Scenario
- In all scenarios, I will use $100,000 as of the initial investment.
- The lifetime annuity rates will be based on guaranteed results, not performance-based products.
- The retirement income is guaranteed for life.
- The income amount is based on a single lifetime.
- The income amount is based on monthly payouts.
- Each annuity plan will illustrate if liquidity is available or not.
- The Death Benefit is either Lump-Sum, Annuity Payments, or None
- Annuity products may vary by state.
The Best Annuities Paying Immediately
| Age | Annuity Type | Liquidity | Death Benfit | Monthly Income |
|---|---|---|---|---|
| 60 | Immediate Annuity | No | None | $425.69 |
| 65 | Immediate Annuity | No | None | $490.90 |
| 70 | Immediate Annuity | No | None | $567.31 |
| 75 | Immediate Annuity | No | None | $690.52 |
The Best Annuities Paying In 5 Years
| Age | Annuity Type | Liquidity | Death Benfit | Monthly Income |
|---|---|---|---|---|
| 55 | Fixed Index Annuity | Yes | Lump-Sum | $580.00 |
| 60 | Fixed Index Annuity | Yes | Lump-Sum | $638.00 |
| 65 | Fixed Index Annuity | Yes | Lump-Sum | $696.00 |
| 70 | Deferred Income Annuity | No | None | $812.66 |
| 75 | Deferred Income Annuity | No | None | $1,059.67 |
The Best Annuities Paying in 10 Years
| Age | Annuity Type | Liquidity | Death Benfit | Monthly Income |
|---|---|---|---|---|
| 50 | Fixed Index Annuity | Yes | Lump-Sum | $754.00 |
| 55 | Fixed Index Annuity | Yes | Lump-Sum | $855.00 |
| 60 | Fixed Index Annuity | Yes | Lump-Sum | $991.00 |
| 65 | Fixed Index Annuity | Yes | Lump-Sum | $1,069.00 |
| 70 | Deferred Income Annuity | No | None | $1,311.42 |
The Best Annuities Paying in 15 Years
| Age | Annuity Type | Liquidity | Death Benfit | Monthly Income |
|---|---|---|---|---|
| 45 | Fixed Index Annuity | Yes | Lump-Sum | $825.00 |
| 50 | Fixed Index Annuity | Yes | Lump-Sum | $944.00 |
| 55 | Fixed Index Annuity | Yes | Lump-Sum | $1,094.00 |
| 60 | Fixed Index Annuity | Yes | Lump-Sum | $1,200.00 |
| 65 | Deferred Income Annuity | No | Lump-Sum | $1,543.69 |
The Best Annuities Paying in 20 Years
| Age | Annuity Type | Liquidity | Death Benfit | Monthly Income |
|---|---|---|---|---|
| 40 | Fixed Index Annuity | Yes | Lump-Sum | $833.00 |
| 45 | Fixed Index Annuity | Yes | Lump-Sum | $1,042.00 |
| 50 | Fixed Index Annuity | Yes | Lump-Sum | $1,208.00 |
| 55 | Fixed Index Annuity | Yes | Lump-Sum | $1,391.00 |
| 60 | Deferred Income Annuity | No | None | $1,801.16 |
Conclusion
During November 2020, income riders from fixed indexed annuities guaranteed more income than income annuities and personal pension plans in early years while income annuities outperformed later years.
To research more about how much annuities pay retirees, check back each month to see the results. Find the best annuity rates in 2020 in the meantime.