How much would a $100,000 annuity pay if bought at age 65?

How much would a $100,000 annuity pay if bought at age 65?

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Retirement planning in 2025 looks a lot different than it did even a few years ago. Between , and high borrowing costs, many near-retirees are searching for financial stability in an increasingly unpredictable financial landscape. For some, that means pivoting away from aggressive growth strategies and toward more dependable sources of income, .

Annuities offer something that few other retirement investments can: guaranteed monthly income for life. But with interest rates expected to fall later this year, locking in an annuity while rates are still relatively high could make a real difference in the size of your payments. when you buy, the larger your monthly checks will be.

Still, while the concept is simple — you give an insurer a lump sum in exchange for a lifetime of payments — the actual numbers can vary quite a bit depending on your personal profile. So, what can a 65-year-old retiree in today's market? That's what we'll examine below.

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If you're 65 and ready to convert $100,000 into guaranteed monthly income through an immediate annuity, here's what you can expect to be paid monthly, according to by Annuity.org:

These figures represent what a $100,000 lifetime income annuity could pay under today's elevated rate environment. But while these figures are a useful starting point, they only tell part of the story. Other factors can impact how much income your annuity generates, including:

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A $100,000 annuity won't replace a full salary in retirement, but it can offer meaningful supplemental income, and other savings. At $652 per month for a 65-year-old man (or $627 for a woman), the monthly payments on a $100,000 annuity are not enough to cover all your expenses, but the payments can help with essentials like groceries, utility bills or healthcare costs. And because payments are guaranteed for life, you don't have to worry about outliving this portion of your income.

This kind of predictability is one of the biggest advantages of an annuity. So, if you're concerned about market swings or running down your savings too quickly, locking in a fixed monthly payment . That said, annuities aren't right for everyone. If you have ample retirement income already, want more liquidity or prefer growth potential over guarantees, you may be better off exploring other options. Still, for those seeking stability, a $100,000 annuity can be a smart addition to the mix.

A $100,000 annuity can provide a reliable source of retirement income, with monthly payments of around $570 to $652 depending on your age, gender, and whether you're covering one life or two. And, in a high-rate environment, like the one we're in now, locking in an annuity now could offer better income security than if you wait until rates fall.

Whether an annuity makes sense for you, though, depends heavily on your overall retirement strategy, your need for guaranteed income and how much flexibility you want in the years ahead. But for many retirees looking to turn part of their nest egg into predictable monthly payments, a $100,000 annuity is a compelling and timely option to consider.