How Much Does a $750,000 Annuity Pay Per Month?

Annuity.org used data from Cannex, an independent company that provides access to a database of updated annuity products, to calculate the expected monthly payments of a $750,000 annuity.

The estimates shown are for an immediate $750,000 annuity with lifetime payments. The payouts listed for a joint annuity with a male and female spouse assume that both spouses are the same age and that payments remain level if either spouse is alive.

With this data, we can give you a clearer picture of what to expect from your annuity payments. Understanding these figures is crucial when planning for long-term financial security, especially if you’re considering how an annuity might fit into your retirement strategy.

Key Facts About What a $750,000 Annuity Pays

1. A $750,000 immediate annuity could pay as much as $4,495 for a 65-year-old woman.
2. Annuity companies use various elements to calculate the payout of a $750,000 annuity, including the annuitant’s age and gender and the start and duration of payments.
3. The type of annuity you purchase can also affect payout amounts because some annuities accumulate value before converting to income.

Having outlined the key factors, it’s important to see how these variables translate into actual monthly payments. The chart below provides a detailed breakdown of the estimated payouts for a $750,000 annuity under various scenarios, allowing you to make a more informed comparison of your options.

Monthly Payouts for $750,000 Immediate Lifetime Annuity

Age	Male	Female	Joint Life
60	$4,286	$4,128	$3,787
65	$4,716	$4,495	$4,061
70	$5,329	$5,021	$4,445
75	$6,253	$5,798	$4,989
80	$7,682	$7,042	$5,859

Annual Percentage* Payouts for $750,000 Immediate Lifetime Annuity

Age	Male	Female	Joint Life
60	6.86%	6.60%	6.06%
65	7.55%	7.19%	6.50%
70	8.53%	8.03%	7.11%
75	10.00%	9.28%	7.98%
80	12.29%	11.27%	9.37%

Leveraging higher payout rates from income annuities with traditional withdrawal strategies can boost retirement satisfaction. Guaranteed income reduces anxiety from market volatility and gives retirees ‘permission to spend.’ Higher interest rates have led to better payouts, with returns in the high single digits a gift for investors in their 60s or 70s needing stable income.

Stephen Kates, CFP®Principal Financial Analyst for Annuity.org

Stephen Kates, CFP® is a personal finance expert specializing in financial planning and education. He serves as the Principal Financial Analyst for Annuity.org, where he delves into industry trends to support consumers and financial advisors on wealth management, annuities, retirement planning, and investing.

Case Studies

The following three scenarios illustrate how different factors influence the payout of a $750,000 annuity. These case studies represent hypothetical estimates and are meant to give you a general idea of how different customers might receive different payouts for the same premium amount.

These payout estimates were calculated using Cannex data.

Scenario 1 – Grace

In this case study, retiree Grace is concerned about outliving her savings after she stops working. She purchases a $750,000 immediate single life annuity, which results in monthly payments of $4,495.

Grace’s immediate annuity has no period certain guarantee, so if she passes away, no remaining payments will go to her beneficiary.

Scenario 2 – Ed

In this scenario, Ed purchases the exact same $750,000 immediate single life annuity as Grace. But Ed’s payouts are significantly higher than Grace’s, with a monthly payment of $5,329.

Ed’s age and gender both contribute to his higher payment amount. The older you are, the higher your payment amounts will be because the insurance company expects to make payments for a shorter period of time. 

This is also why men tend to receive higher payouts than women of the same age. Men, on average, have shorter life expectancies than women. A 70-year-old woman would receive a monthly payout of $5,021 for an identical $750,000 annuity.

Scenario 3 – Sam and Jackie

Sam and Jackie purchased a joint and survivor annuity to cover both their lifetimes. They purchase the same $750,000 immediate annuity as the first two examples, but the monthly payout Sam and Jackie receive is just $4,169.

Because the annuity’s payment guarantee extends to two lifetimes, the insurance company expects to have to make payments for longer than a single life annuity, so the payouts from joint life annuities are significantly lower than what a single life annuity would pay. 

Factors Impacting How Much a $750,000 Annuity Pays Per Month

Annuity providers calculate payouts differently for every annuity contract. As the case studies above show, many variables can influence the monthly payout of a $750,000 annuity.

• Annuitant’s life expectancy: For lifetime payout annuities, the annuitant’s life expectancy has a huge impact on the payments they receive. The lower someone’s life expectancy is, the higher their payments will be. This is why younger people and women tend to have the lowest monthly payment amounts.
• Payout period: The longer an insurance company expects to pay out an annuity, the lower the payments will be. An annuity that only pays out for a set number of years might have higher monthly payments than a single life annuity, and a single life annuity will have higher monthly payments than a joint life annuity.
• Type of annuity: Immediate annuities have the most straightforward payment calculations, but many other types of annuities – including fixed, fixed index and variable annuities – accumulate value for a number of years before converting to an income stream. Payouts can be harder to predict for these types of annuities because the contract value that gets turned into payments will likely differ from the initial premium amount.
• Riders: Annuity buyers can customize their contracts with riders at an additional cost. Some riders can influence the monthly payouts, such as a living benefit rider on a variable annuity or a cost of living adjustment rider that offsets the effects of inflation.