If you’re retired or close to it, chances are you’re thinking about how to make your money last.
An income annuity is one way to turn a chunk of savings into a guaranteed monthly paycheck. You hand over a lump sum to an insurance company, and in return, they send you regular payouts — for life or for a set period.
There are two main types of income annuities.
Compared to more complex annuities, income annuities are relatively simple and usually come with lower fees. But there’s a trade-off — they’re illiquid and require a sizable upfront investment. Once you’re in, your money is locked up and getting it back can be difficult and costly.
So how much money do you need to buy an annuity — and what kind of income can $50,000 get you?
Here’s everything you need to know.
How much can you expect from a $50,000 annuity?
Below, we break down how much a $50,000 annuity pays out under different circumstances.
To get a clear picture, we pulled real-time quotes from Income Solutions, an online marketplace that lets you compare annuity offers side by side. The tool doesn’t require your phone number and charges a flat 2 percent fee already baked into the quotes.
Income Solutions provided quotes from five annuity companies, all with AM Best ratings of A or higher:
- Nationwide
- Lincoln Financial
- Symetra
- Integrity Companies
- Minnesota Life
Quotes were pulled April 23, 2025, using Florida as the annuitant’s location. We skipped inflation adjustments, since most income annuities don’t offer them anyway.
We only looked at income annuities because they’re easy to compare. Other types of annuities, like variable or indexed, have complex structures that make payouts harder to compare and predict.
It’s important to keep in mind the figures below are only estimates. The exact monthly payout you can expect depends on several factors including:
- Your age
- Your gender
- Your location
- Payout structure (life only, joint life or life with period certain)
- When you start receiving payments (now or later)
- Interest rates
We’ll dive deeper into those factors and how they impact potential payouts later.
Scenario No. 1: 65-year-old woman – immediate income annuity
A 65-year-old woman purchasing a $50,000 immediate income annuity for her life only can expect between $284 and $324 per month.
But if she waits until age 70 to lock in that same annuity, her monthly income bumps up to as much as $366.
Now, what if the 65-year-old woman wants to ensure her family receives some of the money she’s put into this annuity if she passes away?
Adding a 10-year period certain means her annuity will keep paying a beneficiary if she dies during the first decade. That guarantee slightly reduces the monthly check — the top quote with this rider drops to $315 instead of the previous high of $324.
Scenario No. 2: 65-year-old male – deferred income annuity
A 65-year-old man purchasing a deferred income annuity that begins paying at age 80, with a death benefit available before payments start, would receive:
- $1,314 per month (Integrity Companies, A+ rating from AM Best)
- $1,068 per month (Symetra, A rating from AM Best)
(Only two of the five insurers on Income Solutions offer this kind of product).
Scenario No. 3: Joint-life immediate income annuity
With a joint-life immediate annuity, payments continue for as long as either spouse is alive. For a 65-year-old man and his 60-year-old wife with a survivor benefit of 100 percent puts monthly payouts between $239 and $277.
But if the wife’s survivor benefit is reduced to 50 percent — meaning her monthly benefit is half the size of her late husband’s — the initial monthly payments increase. In that case, quotes range from $271 to $305.
What if you invest more in an annuity?
As you can see, $50,000 doesn’t buy you much income. If you want a monthly payout that actually moves the needle in retirement, you’ll need to invest more.
We gathered quotes in late January 2025 for annuities funded with $100,000, $250,000 and $500,000. We used the same conditions, just bigger upfront investments and interest rates have not changed.
As you’ll see, the difference in monthly income is significant — and shows how much capital it really takes to create meaningful retirement income. Here are the results.
$100,000 annuity payouts
- 65-year-old woman – immediate income annuity: $575 – $643 per month
- Joint-life immediate income annuity: $558 – $609 per month
$250,000 annuity payouts
- 65-year-old woman – immediate income annuity: $1,446 – $1,628 per month
- Joint-life immediate income annuity: $1,213 – $1,381 per month
$500,000 annuity payouts
- 65-year-old woman – immediate income annuity: $2,858 – $3,219 per month
- Joint-life immediate income annuity: $2,450 – $2,800 per month
$1 million dollar annuity …
What if you had even more capital to invest? This is how much a $1 million annuity pays in retirement.
Factors that influence an income annuity’s payout
These quotes can give you a rough estimate of how much money you can expect from an income annuity, but certain factors influence your actual payout significantly.
Here are the main variables that impact how much guaranteed income you receive each month from your annuity.
Age
The older you are when payments start, the higher your payout. Why? The insurance company expects to pay you for fewer years. The best age to buy an annuity ultimately depends on your personal situation and goals.
Gender
Women typically get slightly smaller checks than men because they live longer. Insurers expect to make more payments over time.
Payment start date
When your payments begin also makes a big difference in the payout you receive.
- Immediate annuities: Start paying within the first 12 months of signing your contract. This type of annuity is also called a single-premium immediate annuity, or SPIA.
- Deferred annuities: Payouts begin at a future date, often years or even decades in the future.
Because deferred annuities start paying out later, interest has time to compound and increases the payout. The longer you wait, the higher your monthly check will be. However, the trade-off is you’ll need to lock your money up for years before receiving income.
Payout structure
- Life only: Highest payout, but ends when you die.
- Joint life: Payments continue for a surviving spouse. To be clear, that doesn’t mean both people receive a payment while they’re both alive. Survivor benefits can be structured so that the surviving spouse receives 50, 66.6, 75 or 100 percent of the payment their late spouse received. The higher the survivor benefit, the lower the monthly payout will be for the other spouse.
- Period certain: Guarantees payments for a set number of years (even if you die early), but lowers monthly income.
Interest rates
Higher interest rates generally lead to higher income annuity monthly payments.
In April 2025, for example, payouts were higher than they were from 2012-2020, when interest rates were at or near historic lows. However, current payouts are lower than they were between May 2023 and September 2024, when interest rates were at a 20-year high.
Inflation protection
Adding a built-in annual increase (say 2 percent a year) means smaller initial payouts. Most income annuities don’t offer an inflation adjustment and some buyers skip this option to keep payouts as high as possible.
Income annuities vs. other annuities
Income annuities are one of the most straightforward annuity options out there. You hand over a lump sum to an insurance company, and in exchange, they guarantee monthly payments for life — no matter how long you live. It’s basically a do-it-yourself pension.
Unlike variable or indexed annuities, SPIAs and deferred income annuities aren’t tied to market performance. There are no subaccounts to manage, no indexes and no confusing contract language around market returns. The size of your payout is determined by interest rates at the time you buy, and that amount stays consistent.
That simplicity comes with trade-offs, though. One big drawback: Most income annuities don’t increase payouts over time. So if you bought one before inflation ramped up — say in 2020 — your fixed payments today are worth less in real terms.
The other issue? You need serious capital to make it work. Putting $50,000 into an annuity barely moves the needle on your monthly income. If you want meaningful cash flow, you’ll need to invest at least $100,000 or more upfront.
That’s why many retirees skip income annuities and explore alternatives, even if they come with more complexity and higher fees.
Take variable annuities, for example. They invest your money in mutual fund-style accounts with the potential for growth, but they also expose you to market risk and often come with a host of fees, commissions and pricey add-on riders.
Indexed annuities aim to split the difference. They offer limited upside tied to a market index with protection against losses. But the trade-off is a convoluted structure that caps how much you can earn and often confuses even seasoned investors.
Bottom line
An income annuity can deliver peace of mind through fixed, guaranteed monthly income. But $50,000 won’t go far — you’ll need a larger lump sum for meaningful results. As the quotes show, a $50,000 annuity can provide anywhere from $239 to $1,314 per month, depending on the contract structure.
If you’re interested in buying an annuity, make sure to shop around and get multiple quotes. And don’t sign a contract without talking to a financial advisor who can help you evaluate quotes from insurers and pick the best option for you.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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