How Much Does A $100,000 Annuity Pay?

For many retirees, the biggest financial fear isn’t a market crash — it’s running out of money.

One way to lock in predictable income for life — and avoid the nightmare of running out of money in retirement — is with an income annuity. You hand over a lump sum to an insurer, and in exchange, they commit to sending you guaranteed monthly checks.

There are two main varieties of income annuities:

Unlike some other annuity types, income annuities are generally straightforward and carry low fees. But there’s a trade-off: You generally need a big chunk of cash upfront, and you usually can’t pull that money back out once payouts begin. That makes income annuities best suited for retirees with larger savings or those willing to trade liquidity for predictability.

So, how much money do you need to buy an annuity? Here’s how much $100,000 can get you.

What a $100,000 annuity pays

The examples below are based on actual quotes for immediate and deferred income annuities. We skipped other annuity types because they’re difficult to compare — variable returns and complicated formulas make apples-to-apples payouts nearly impossible. With these two types of annuities, the payout is clear from day one.

Your monthly income annuity check depends on:

• Your age
• Gender
• Where you live
• Payment structure (life only, joint life, period certain)
• Start date (now or later)
• Interest rates at purchase

Quotes came from Income Solutions, an online platform where consumers can see offers side-by-side without entering a phone number. Retail buyers pay a flat 2 percent fee through Income Solutions, baked into the numbers shown.

Insurers included Nationwide, Integrity Companies, Lincoln National Life Insurance Company, Symetra and Minnesota Life Insurance Company — all rated A or better by AM Best. The location was set to Florida with no annual cost-of-living bump and rates were pulled Aug. 12, 2025.

Scenario 1: 65-year-old woman, immediate annuity, life only

• Monthly payout: $565 to $644
• If she waits until age 70: Up to $729 per month
• Adding a 10-year period certain — so beneficiaries get the rest of the payments if she dies early — lowers the top payout from $644 to $629.

Scenario 2: 50-year-old man, deferred annuity with payouts starting at 65, life only

• Monthly payout: $1,439 or $1,207 per month. (Only two insurers offered this product on Income Solutions.)
• If he buys at age 55 and starts payments at age 70 (still a 15-year deferment), quotes jump from $1,398 to $1,639 per month.

Scenario 3: Joint-life immediate annuity, 65-year-old man and 60-year-old woman with a 100 percent survivor benefit

• Monthly payout: $478 to $548 per month
• If the wife’s survivor benefit is reduced to 50 percent (meaning, her monthly benefit is half the size of her late husband): $549 to $607 per month.

If you invest more: Payouts for $250,000, $500,000 and $1 million annuities

Boosting your investment increases your monthly annuity income. The total check you receive each month can look very different once you move from a $100,000 contract to $250,000, $500,000 or even $1 million.

Here’s how the numbers stack up for the same scenarios.

$250,000

• 65-year-old woman, immediate, life only: $1,404 to $1,608
• 50-year-old man, deferred to age 65, life only: $3,030 or $3,552
• Joint-life immediate (65-year-old man, 60-year-old woman) with 100 percent survivor benefit: $1,195 to $1,378

$500,000

• 65-year-old woman, immediate, life only: $2,809 to $3,218
• 50-year-old man, deferred to 65, life only: $6,093 or $7,103
• Joint life immediate (65-year-old man, 60-year-old woman) with 100 percent survivor benefit: $2,389 to $2,761

$1 million

• 65-year-old woman, immediate, life only: $5,618 to $6,440
• 50-year-old man, deferred to 65, life only: $12,217 or $14,206
• Joint life immediate (65-year-old man, 60-year-old woman) with 100 percent survivor benefit: $4,779 to $5,527

Key factors that shape your payout

Though quotes offer a general idea of what an income annuity might pay, the actual amount can vary widely. Several key factors determine your monthly guaranteed income in retirement — and small changes to these variables can push your payout higher or lower.

Age

The later you start, the more you get paid per month because the insurer expects to make payments over a shorter period. However, the best age to buy an annuity depends on your personal situation and goals.

Gender

Women usually get slightly less per month than men because they tend to live longer, so insurers expect to make more payments over time.

Start date

When your payments begin also makes a big difference in the payout you receive. Single-premium immediate annuities (SPIAs) kick in within 12 months, while deferred income annuities can wait decades before starting.

Delaying the start of an income annuity gives your lump sum time to grow through accumulated and compounded interest, boosting future payouts. However, unlike some deferred annuities that let you contribute gradually, deferred income annuities require a one-time lump sum payment — which means you’ll need to have the money saved up much earlier in life.

Payout structure

• Life-only: These annuities pay out for as long as you live, offering the highest possible monthly income.
• Joint-life: A joint-life annuity keeps payments going for the surviving spouse after the first annuitant passes away. This doesn’t mean both spouses get paid while alive — instead, the survivor gets a set percentage of the deceased’s payout, often 50, 66.6, 75 or 100 percent. The more generous the survivor benefit, the lower the initial monthly payment.
• Guaranteed period: Annuities with a guaranteed period (like a 10-year period certain), ensure that if the annuitant dies within the set timeframe — five, 10 or 15 years — beneficiaries still receive payments for the rest of that term. This protection comes at the cost of slightly reduced monthly income.

Interest rates

Higher rates mean better payouts because income annuity payouts are tied to prevailing interest rates. In August 2025, payouts were better than the ultra-low-rate years of 2012–2020, but lower than during the recent 2023–2024 interest-rate peak.

Inflation protection

Adding an annual increase lowers your starting payment but boosts it over time. Most income annuities don’t offer an inflation adjustment, and some retirees skip it for higher upfront income.

Taxes

Where you purchase your annuity also matters — it determines how much of your payout is taxable.

If you bought the annuity with pre-tax dollars — like inside a traditional IRA or 401(k) — every payment is taxable as ordinary income. If you used funds outside a retirement plan (after-tax money), only the earnings are taxable and part of each payment is treated as a tax-free return of principal.

So, if you buy an annuity inside a retirement plan, a bigger portion of that payout may ultimately go to taxes — something to consider as you weigh your payout options.

Income annuities vs. other annuities

Income annuities are the plain-vanilla, low-fee side of the annuity world. No investment management fees, no subaccounts, no complicated participation rates — just a fixed monthly check tied to interest rates when you buy.

An income annuity tends to work best as one part of a broader retirement strategy — often alongside Social Security, pensions and investment withdrawals. Many retirees use annuities to cover fixed expenses like housing, insurance and utilities, then rely on other assets for discretionary spending and emergencies.

However, there are some downsides to purchasing an income annuity:

• Payments usually don’t rise with inflation.
• You need significant capital.
• You can’t tap the principal once payouts begin.

Financial advisors often suggest limiting income annuities to 25 percent of your entire retirement savings. That means a $100,000 contract works best for someone with $400,000 or more in total assets. Without that cushion, locking up a large share of your savings in a product you can’t easily access could leave you short on cash for emergencies.

If you’re worried about liquidity, it’s worth asking the insurer if they offer penalty-free partial withdrawals. Some contracts let you withdraw up to 10 percent a year.

Perhaps the biggest downside with income annuities is the large amount of money needed to generate a meaningful monthly payout. After all, the gap between investing $100,000 (with monthly payouts as low as $565 per month) and $1 million (with payouts as high as $6,440 per month) is huge.

Because of these downsides, some buyers look to other annuity options, despite their added complexity and higher costs.

Variable annuities link returns to investment performance, offering growth potential but also exposing you to market risk. They’re also known for steep fees, commissions and pricey optional riders. Meanwhile, index-linked annuities give some access to market gains while cushioning against losses, but their intricate rules and caps can significantly limit upside returns.

Bottom line

An income annuity can deliver dependable retirement income, but the payout hinges on your age, gender, annuity structure, timing and interest rates. In the examples above, $100,000 produced anywhere from $478 to over $1,439 a month.

If you’re thinking about buying an annuity, it’s crucial to shop around and compare offers from several insurers. An insurance agent can help you shop for quotes while a reputable financial advisor can help you weigh the trade-offs and choose the structure that best fits your needs.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.