If I Buy A $100,000 Annuity, How Much Cash Will It Pay Me Each Month?

Planning for retirement means ensuring you’ll have enough income to maintain your lifestyle for decades to come. An annuity is one way to turn your savings into predictable income you can count on, providing steady monthly payments for a set period—or even for life.

If you have $100,000 to invest, how much guaranteed income could that provide? The answer depends on several factors, including the type of annuity, your age, and current interest rates. Let’s break it down.

What Monthly Income Can a $100,000 Annuity Provide?

Your payout will depend on whether you choose lifetime income or a fixed payout period:

Immediate Income Annuity (Lifetime Payments)

If you want income to start right away and last for life:

• A 65-year-old man could receive around $630 per month.
• A 65-year-old woman might get about $600 per month (due to longer life expectancy).

Fixed Annuity with a Set Payout Period

If you prefer income for a specific number of years:

• With a 5% interest rate and a 10-year payout, you could receive about $1,100 per month.
• If you extend the payout to 20 years, your monthly income would be closer to $720.

Key Factors That Impact Your Annuity Income

When You Start Payments

• Immediate annuities start paying within 30 days.
• Deferred annuities allow you to delay payments, often leading to higher payouts since your investment has more time to grow.

Your Age & Gender

• Older retirees typically receive higher monthly payouts since the expected payout period is shorter.
• Men tend to get slightly more per month than women because they have shorter life expectancies.

Interest Rates

When interest rates are high, annuity payouts increase because insurers can generate higher returns.

Payout Duration

The length of time you receive payments affects the amount you get each month:

• Lifetime payouts guarantee income for as long as you live but might have lower monthly payments.
• Fixed-term annuities offer higher payments for a set number of years.

Is a $100,000 Annuity Right for You?

An annuity can be a powerful tool for retirement income, helping to balance your savings and Social Security benefits. Whether an annuity fits your plan depends on your retirement goals, risk tolerance, and other income sources.

At Blueprint Income, we specialize in helping retirees find the right annuity for their needs. We partner with top-rated insurance companies to offer competitive rates and a transparent buying experience.