How Much Does a $500,000 Annuity Pay Per Month?
If you bought a $500,000 annuity at 65 it would pay you $3,092.25 per month with payments beginning in 30 days. If you purchased the same $500,000 annuity at 70 it would pay you $3,439.86 per month with payments beginning immediately.
How Much Would a $500K Annuity Pay You?
There are a handful of factors that determine how much a lifetime annuity will pay you. The primary variables are:
- Your age,
- gender,
- how long you wait to begin payments, and
- the annuity payout option you chose
Annuity payments are also interest rate sensitive and can change as often as weekly. With that said the table below provides you a general idea of how much a $500,000 annuity would pay you based on your age at the time of purchase.
$500,000 Immediate Annuity Payouts Examples by Age Purchased
| Age | Monthly | Annual |
|---|---|---|
| 55 | $2,058 | $24,690 |
| 56 | $2,110 | $25,315 |
| 57 | $2,162 | $25,940 |
| 58 | $2,214 | $26,565 |
| 59 | $2,266 | $27,190 |
| 60 | $2,318 | $27,815 |
| 61 | $2,370 | $28,440 |
| 62 | $2,422 | $29,065 |
| 63 | $2,474 | $29,690 |
| 64 | $2,526 | $30,315 |
| 65 | $2,578 | $30,940 |
| 66 | $2,630 | $31,565 |
| 67 | $2,683 | $32,190 |
| 68 | $2,735 | $32,815 |
| 69 | $2,787 | $33,440 |
| 70 | $2,839 | $34,065 |
How Much Interest Does A $500,000 Annuity Pay ?
Not looking to buy a lifetime income annuity? You can also generate a monthly income using fixed annuities.
A $500,000 annuity would pay you $29,519.92 annual interest payments or 2,395.83 if you took your interest out systematically each month. These payments assume a 5-year fixed annuity with a 5.75% rate.
A 5-year fixed annuity would pay you a guaranteed interest rate for the duration of the 5-year annuity contract.
Get an Annuity Quote
Get an annuity quote using the form below; we respond within 4 business hours. Or, use an annuity calculator to get an estimated lifetime payout now.
Are Annuities a Good Investment?
Annuities are a good investment for retirement in today’s low-interest-rate environment, but an annuity is not right for everyone. As a general practice at My Annuity Store, our first step in retirement income planning is to complete a basic retirement income planning worksheet with our clients.
If we determine there is an income gap between guaranteed income from other sources (Social Security/ Pension) and necessary retirement expenses we often purchase an income annuity with monthly payments sufficient to fill the cap.
We very rarely recommend allocating more than 50% of your liquid net worth to an annuity as annuities come with a surrender charge for excess withdrawals during the surrender charge period.
Income Riders vs Immediate Annuities
Annuities are the only financial vehicle that can guarantee an income stream you can not outlive. However, we’ve found that most of our clients think of annuitization when they think of lifetime income payments.
All of the income payments referenced in this guide are generated using a fixed index annuity with an income rider. Indexed annuities provide more flexibility than annuitization because you don’t give up control of your asset.
You have access to your account value even while you are taking lifetime income payments. Excess withdrawals above your lifetime income amount will reduce your income payments moving forward.
If there are still funds in your account at your death they are paid directly to your beneficiary as a lump sum death benefit.
