Guaranteed Lifetime Income Annuity Estimator (2025)
Estimate your lifetime monthly income from an immediate or deferred annuity based on your investment amount, age, gender, and payout type.
| Age | Investment | Monthly Income (Single) | Monthly Income (Joint) |
|---|---|---|---|
| 60 | $250,000 | $1,100 | $960 |
| 65 | $250,000 | $1,315 | $1,145 |
| 70 | $250,000 | $1,580 | $1,350 |
| 75 | $250,000 | $1,920 | $1,650 |
(Estimates based on 2025 fixed annuity market averages in the U.S.)
This estimator helps users understand how much guaranteed lifetime income they can receive from a fixed or immediate annuity. It models realistic payout scenarios based on age, gender, payout structure, and market interest rates, using actuarial life expectancy assumptions.
A lifetime income annuity is a contract with an insurance company that converts a lump sum into monthly payments for life, regardless of how long you live. You can choose between:
Single-life
Ends when you pass
Joint-life
Continues for spouse
Period-certain
Guaranteed for fixed term
Deferred
Payments start later for higher payouts
| Term | Definition |
|---|---|
| Immediate Annuity | Begins payments within 12 months of purchase |
| Deferred Annuity | Accumulates value before payouts start |
| Fixed Annuity | Guarantees a stable payout |
| Indexed Annuity | Linked to market performance with downside protection |
| Lifetime Income | Payments continue as long as you live |
| Period Certain | Guaranteed payments for set number of years |
- Predictable income for life
- Protects against outliving savings
- Optional survivor benefits
- Deferral options increase payout
- Stable returns even in volatile markets
- No liquidity, your principal is locked
- Inflation may reduce real income value over time
- Lower returns if you die early
- Payouts depend on insurer's creditworthiness
Scenario 1 – Single Retiree, Age 65
Investment: $250,000
Monthly Income: $1,315 for life
Break-even: Age 81
Lifetime payout to 90: $394,500
Scenario 2 – Couple, Both Age 65
Investment: $250,000
Monthly Income: $1,145 joint life
Break-even: Around age 85
Benefit: Ensures income for both spouses
Q1: Are annuity payments really guaranteed?
Yes, fixed annuities are backed by the insurer's general account and state guaranty associations provide additional protection up to certain limits.
Q2: How are annuities taxed?
Earnings are taxed as ordinary income when withdrawn. The portion representing your original principal is tax-free return of basis.
Q3: Can I outlive my annuity?
No, payments continue for your lifetime (and spouse's, if joint). This is the primary benefit of lifetime annuities.
Q4: What happens if I die early?
Depending on the option, remaining principal may be forfeited or paid to beneficiaries. Some options include death benefits or period certain guarantees.
Q5: Should I choose immediate or deferred?
Immediate if you need income now. Deferred if you can wait 5+ years for significantly higher payments and are still working.
Q6: How much should I invest in an annuity?
Financial advisors typically recommend 25-50% of retirement assets in guaranteed income products, depending on your risk tolerance and other income sources.