An immediate annuity turns a lump sum into a paycheck for life. Use this guide to understand the math, then call 1-800-MEDIGAP for a personalized quote.
How does an immediate annuity calculator work?
An immediate annuity calculator estimates your monthly income by combining four inputs: your premium (lump sum), your age, your gender, and the payout option you choose. The insurer pools your money with other buyers and pays income based on current interest rates and life expectancy. Because older buyers have a shorter expected payout period, they receive higher monthly checks for the same premium. A 70-year-old typically out-earns a 65-year-old on identical deposits. Calculators give estimates only; your actual quote depends on the carrier, your state, and rates the day you buy. For a binding figure, call 1-800-MEDIGAP and a licensed specialist will run live quotes from multiple A-rated insurers.
How much does a $100,000 immediate annuity pay per month?
In mid-2026, a $100,000 single premium immediate annuity (SPIA) pays a 65-year-old man roughly $625 per month for life and a 65-year-old woman about $590, on a life-only basis, according to Annuity.org. Adding a 10-year-certain guarantee lowers those to about $608 and $576. A joint payout covering two 65-year-old spouses starts near $536 monthly. Waiting until 70 or 75 raises the payout because the expected payment period is shorter. These are illustrative figures, not guarantees; rates change daily. Call 1-800-MEDIGAP for current, state-specific quotes.
What payout options should you compare?
The payout option you choose changes your check size and protections. Life-only pays the highest monthly amount but stops at death, with nothing to heirs. Life with period certain (often 10 or 20 years) guarantees payments to a beneficiary if you die early, in exchange for a slightly lower check. Joint and survivor income continues for a surviving spouse. Cash refund or installment refund returns any unpaid premium to your heirs. There is no single best choice; it depends on your health, spouse, and whether leaving money to family matters. A 1-800-MEDIGAP specialist will model each option side by side so you can compare real numbers.
Who is an immediate annuity right for?
Immediate annuities fit retirees who want a predictable paycheck they cannot outlive, especially to cover essential expenses like housing, food, and Medicare premiums. They work well when Social Security and a pension do not fully cover your fixed costs. They are less suitable if you need liquidity, expect large medical bills, or want to leave the full lump sum to heirs, because the principal is generally surrendered to the insurer. Many retirees annuitize only part of their savings, keeping the rest liquid. To weigh whether an immediate annuity fits your full retirement and Medicare picture, call 1-800-MEDIGAP.
How do current 2026 interest rates affect your payout?
Immediate annuity payouts move with interest rates: higher rates mean bigger monthly checks because insurers can earn more on your premium. As of mid-2026, rates sit near 15-year highs, so payouts are relatively attractive, though they are expected to ease gradually as the Federal Reserve cuts rates. That means locking in now may capture more income than waiting. Because each carrier prices differently and rates change daily, comparing several insurers on the same day is essential. A licensed 1-800-MEDIGAP specialist shops A-rated carriers for you in one call so you see the strongest current offer.