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As more Americans enter retirement amid today's climate of economic uncertainty, the opportunities that allow for predictable income after you stop working are taking center stage. , but while that money can help round out your retirement budget, it's generally not enough to comfortably cover all your living expenses — especially as prices for essentials, like housing, groceries and medical care, .
That's a large part of why . They offer steady income payments that can help retirees avoid outliving their savings. And, in today's higher-rate environment, fixed annuities may be particularly appealing, as your annuity payouts are closely tied to . The higher the rate, the more the insurer can earn on your money, which translates into larger monthly payments for you.
But how much will a $100,000 annuity actually pay if you're 70 and ready to buy one today? That answer depends on a few key factors.
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If you're considering at age 70, you're likely looking for a way to turn a portion of your retirement savings into a reliable income stream. But how much monthly income can you actually get from that type of investment at that age? While the answer depends on a few key factors, recent data can offer a useful snapshot of what you might expect.
According to by Annuity.org, if you're a 70-year-old man purchasing a $100,000 immediate fixed annuity, you could expect to receive about $729 per month for life. A 70-year-old woman, meanwhile, might receive around $689 per month. And if you choose a joint life annuity — which continues payments to your spouse after your death — the monthly income drops to roughly $620 per month.
Why the difference? It comes down to actuarial math and risk. Here's what typically impacts your monthly annuity payout:
So, while the monthly payments outlined above may not sound like life-changing amounts, remember that these are guaranteed for life, and that kind of security is tough to beat in today's volatile markets.
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generally depends on your personal goals, health and broader retirement plan. That said, there are certain indicators that a $100,000 annuity could make sense for you, specifically when:
On the flip side, annuities are not liquid investments. You can't easily access your money if you're in a pinch, so you should only use a portion of your savings to buy one. You should also consider opportunity cost. If your $100,000 could grow significantly in the market and you're comfortable with some risk, you might ultimately generate more wealth another way. But the market doesn't guarantee returns. Annuities, however, do.
A $100,000 annuity purchased at age 70 can provide a solid stream of monthly income of about $729 for men, $689 for women or $620 for a joint life policy right now. While that alone likely won't cover all your retirement expenses, it can form , especially when combined with Social Security and other savings. So, if guaranteed income and financial predictability matter to you, an annuity may be well worth the trade-off in liquidity. Just make sure it fits into your broader financial strategy before locking in.
