You're standing at the edge of retirement, looking at a pile of savings you've spent forty years building, and the big question isn't "how much do I have?" It is "how much will an annuity pay me every month?" Most people think of annuities as a black box. You put money in, and some math wizard at an insurance company spits out a check until you die. Honestly, it’s a bit more nuanced than that. The reality of 2026 is that interest rates have shifted the math significantly. If you looked at these numbers three or four years ago, throw them out. They’re stale.
How much you actually get depends on a cocktail of your age, your gender, the current interest rate environment, and how much "protection" you want to bake into the contract.
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The Raw Numbers: What $100,000 Buys You Today
Let's cut to the chase with some illustrative examples based on current 2026 market data. If you take $100,000 and buy a Single Life Immediate Annuity right now, the payout isn't a single flat rate. It’s a sliding scale.
- A 65-year-old male is looking at roughly $652 per month. That's an annual payout rate of about 7.8%.
- A 65-year-old female typically sees closer to $627 per month.
Why the gap? It’s not a "pink tax." It’s math. Statistically, women live longer. The insurance company knows they’ll likely be writing those checks for a few extra years, so they trim the monthly amount to make the pool of money last.
If you wait until you're 75 to start, that same $100,000 might net a man **$859 a month**. Basically, the older you are, the more they pay you because, to put it bluntly, they don’t expect to pay you for as long.
The Age Factor
Age is the biggest lever you can pull. Check out how the annual payout percentages climb as you get older:
- Age 60: Around 7.15% (Male) or 6.96% (Female)
- Age 70: Jumps to 8.78% (Male) or 8.36% (Female)
- Age 80: Can soar past 12% for men.
Keep in mind, these aren't "interest rates" like you'd see on a CD. This is a payout rate. It includes the interest the company earned and a portion of your own principal being returned to you.
How Much Will an Annuity Pay if You Delay?
Not everyone needs the cash today. If you’re 55 and plan to retire at 65, you might look at a Deferred Income Annuity (DIA).
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By giving the insurance company your money now but telling them "don't pay me for ten years," you're essentially supercharging your future check. You get the benefit of compound interest during the waiting period, plus the fact that you'll be older when the payments start.
For example, a $100,000 investment at age 55 that starts paying out at age 65 could yield significantly more than if you had just waited until 65 to buy the policy. We're talking the difference between a $600 check and something potentially north of $900, depending on the specific 2026 riders and interest credits applied.
The Hidden "Gotchas" That Shrink Your Check
You’ll hear a lot of talk about "bells and whistles." In the annuity world, these are called riders. Every time you add a layer of protection, your monthly payment takes a hit.
- Joint Life Options: If you want the check to keep coming until both you and your spouse pass away, expect your monthly payout to drop by 10% to 15%.
- Period Certain: This guarantees that if you "get hit by a bus" two months after buying the annuity, the company will keep paying your beneficiaries for a set time (like 10 or 20 years). It’s peace of mind, but it costs you.
- Inflation Protection (COLA): This is a big one in 2026. You can ask for your payment to increase by 2% or 3% every year to keep up with the cost of living. But here’s the kicker: your starting payment will be much lower—sometimes 20% to 30% lower—than a flat payout.
Why Interest Rates in 2026 Matter So Much
Annuity payouts are heavily tied to the yield on 10-year and 30-year Treasury bonds. When rates are higher, insurance companies can earn more on the "float"—the money they hold before paying it out to you.
Currently, we are seeing some of the most competitive rates in over a decade. Some fixed annuities (MYGAs) are hitting top rates near 7.65% for a 10-year term. This trickles down into the income annuity market, meaning you're getting more "bang for your buck" than someone who retired in 2020 when rates were near zero.
Real-World Nuance: TIAA and MMBB Examples
It’s worth looking at how major players are handling payouts this year. For instance, TIAA Traditional recently approved a 0.50% increase for their 2026 income payments for existing annuitants. Their "new money" payout rate for January 2026 is sitting around 7.5% for a 67-year-old.
Then you have organizations like MMBB, which uses a "unit" system. Their 2026 payout value is set at $80.25 per unit, which is a 3.7% increase over last year. This shows that "how much" isn't always a fixed number; sometimes it's a moving target based on fund performance and cost-of-living adjustments.
Is an Annuity Actually Worth It?
Honestly, it depends on your "sleep at night" factor.
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Financial experts like Wade Pfau often point out that annuities can act as "longevity insurance." If you live to be 105, the insurance company is on the hook for those payments, even if your original $100,000 was exhausted decades ago. That’s a deal you can’t get from a standard brokerage account.
But if you value flexibility, annuities can feel like a cage. Once you "annuitize"—meaning you turn that lump sum into a stream of income—that cash is usually gone. You can’t go back and grab $20,000 for a new roof or a medical emergency.
Actionable Steps for Your Retirement Strategy
- Get a "Cash Refund" Quote: If you're worried about dying early and the insurance company keeping your money, ask for the "Life with Cash Refund" option. It ensures that if you die before receiving your initial investment back, the rest goes to your heirs.
- Ladder Your Purchases: Don't put all $500,000 into an annuity at once. Buy a smaller one now, and maybe another in three years. This protects you against interest rate swings.
- Check the AM Best Rating: Only buy from companies with an A or A+ rating. You are relying on this company to be solvent 30 years from now.
- Compare the Payout vs. the Interest: Make sure you understand that a 7% payout rate is NOT a 7% interest rate. Part of that 7% is your own money coming back to you.
Moving Forward With Your Plan
To figure out exactly how much an annuity will pay you, you need to run a specific quote that includes your birth date and your state of residence. Payouts can vary slightly by state due to local regulations and premium taxes.
Start by deciding what percentage of your "must-have" expenses (mortgage, food, utilities) aren't covered by Social Security. That gap is the amount of income you should look to fill with an annuity. Don't over-fund it; keep some cash in a liquid account for the unexpected stuff life throws at you.