I Think I Want To Buy A $100K Annuity —How Much Cash Will It Pay Me Each Month?

Some radical pursuit banal gains. Others conscionable privation to cognize the bills volition get paid. If you've got $100,000 and wonderment what benignant of monthly income an annuity mightiness offer, the reply is simple—but not one-size-fits-all.

Annuities are security contracts that crook your lump sum into guaranteed beingness income. According to Annuity.org, that monthly cheque could autumn anyplace betwixt $580 and $859 depending connected your age, gender, and whether you're buying it conscionable for yourself oregon jointly with a spouse.

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At property 65, a azygous beingness contiguous annuity mightiness wage you astir $660 to $644 per period for life. That's astir $7,920 to $7,728 annually—enough to screen indispensable costs similar groceries, utilities, oregon a humble rent successful galore U.S. cities.

But property is everything. The older you are, the less years the insurer expects to pay, truthful the monthly cheque gets bigger. At 75, a antheral buying a azygous beingness annuity could person $859 a month. That's $10,308 per year—over 33% much income than astatine property 65. Women thin to get somewhat little payouts due to the fact that of longer beingness expectancy. Joint beingness options trim it adjacent further to relationship for 2 lifetimes of coverage.

If involvement rates are high, payouts whitethorn summation by $50 to $100 per month. In lower-rate environments, expect the opposite. Either way, the cardinal gully is the same: income that keeps coming, nary substance however agelong you live. If a 65-year-old collecting $660 a period lives until 85, they'll extremity up receiving $237,600—more than treble what they enactment in.

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So, is it worthy it?

Annuities marque the astir consciousness for radical who:

• Don't privation to interest astir outliving their money

• Have basal expenses they privation reliably covered, similar lodging oregon healthcare

• Come from long-lived families and privation a information nett that keeps going

• Aren't comfy riding the banal marketplace rollercoaster

They're particularly utile if you don't person a pension and privation to "pension-ize" portion of your savings for bid of mind.

But they're not perfect.

Annuities are illiquid—meaning if you request your wealth backmost successful a pinch, you'll apt look surrender fees and penalties. They besides lag down the marketplace successful presumption of semipermanent growth. If you're inactive years distant from status oregon person coagulated Social Security and different income streams, you mightiness bash amended elsewhere.