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

A $750,000 immediate annuity with a lifetime payout could pay a 65-year-old woman as much as $4,495 a month. The monthly payout calculation depends on several factors, including the start and duration of payments and the annuitant’s age and gender.

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  • Written By Jennifer Schell, CAS®
    Jennifer Schell, CAS®

    Jennifer Schell, CAS®

    Financial Writer, Certified Annuity Specialist®

    Jennifer Schell is a professional writer focused on demystifying annuities and other financial topics including banking, financial advising and insurance. She is proud to be a member of the National Association for Fixed Annuities (NAFA) as well as the National Association of Insurance and Financial Advisors (NAIFA).

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  • Edited By Lamia Chowdhury
    Lamia Chowdhury
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    Lamia Chowdhury

    Financial Editor

    Lamia Chowdhury is a financial editor at Annuity.org. Lamia carries an extensive skillset in the content marketing field, and her work as a copywriter spans industries as diverse as finance, health care, travel and restaurants.

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  • Reviewed By Stephen Kates, CFP®
    Stephen Kates, CFP®
    Stephen Kates, CFP®

    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.

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  • Updated: December 18, 2024
  • 5 min read time
  • This page features 3 Cited Research Articles

Key Takeaways

  • A $750,000 immediate annuity could pay as much as $4,495 for a 65-year-old woman.
  • 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.
  • The type of annuity you purchase can also affect payout amounts because some annuities accumulate value before converting to income.

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.

Monthly Payouts for $750,000 Immediate Lifetime Annuity

AgeMaleFemaleJoint 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
Based on the life-only option for a policy purchased with $750,000 as of November 6, 2024. Joint Life assumes male and female owners of equal ages. Data sourced from Cannex.

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

AgeMaleFemaleJoint Life
606.86%6.60%6.06%
657.55%7.19%6.50%
708.53%8.03%7.11%
7510.00%9.28%7.98%
8012.29%11.27%9.37%
*Based on the life-only option for a policy purchased with $750,000 as of November 6, 2024. Joint Life assumes male and female owners of equal ages. These payout rates include both interest and return of principal. The rates represent the annualized payout as a percent of the total premium. The payout rate is not an interest rate. Data sourced from Cannex.
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Leveraging the higher payout rates from income annuities in addition to traditional withdrawal strategies can boost retirement satisfaction. Guaranteed income has been shown to offer retirees a feeling that they have ‘permission to spend’ and reduce anxiety from market volatility.

Higher interest rates have translated into better payouts. For the average investor in their 60s or 70s who needs stable and reliable income, payouts reaching high single-digits can be a gift.

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

Name: Grace

Age: 65

Looking to invest: $750,000

  • Grace wants guaranteed income she can’t outlive
  • She purchases an immediate annuity with a single life payout

Monthly payout: $4,495

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

Name: Ed

Age: 70

Looking to invest: $750,000

  • Ed wants a guaranteed income stream for life
  • He purchases an immediate annuity with a lifetime payment

Monthly payout: $5,478

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

Names: Sam and Jackie

Ages: 65 and 68

Looking to invest: $750,000

  • Sam and Jackie want to ensure that neither of them outlives their retirement savings
  • They purchase a joint life annuity that guarantees payments for both of their lifetimes

Monthly payout: $4,283

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.
Please seek the advice of a qualified professional before making financial decisions.
Last Modified: December 18, 2024
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