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.

Monthly Payouts for $750,000 Immediate Lifetime Annuity

Age	55	60	65	70	75	80
Male Single Life	$4,094	$4,406	$4,853	$5,478	$6,392	$7,829
Female Single Life	$3,983	$4,251	$4,631	$5,155	$5,930	$7,182
Joint Life	$3,724	$3,902	$4,179	$4,561	$5,111	$6,001

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 $4,631.

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 $5,478.

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, because men, on average, have shorter life expectancies than women. A 70-year-old woman would receive a monthly payout of $5,155 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 $4,283.

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.