Best Immediate Annuity for Monthly Income
Over 100 Carriers to Quote From. Here are a few of them!
If you want dependable cash flow starting right away, a Single Premium Immediate Annuity (SPIA) is often the best immediate annuity for monthly income. You exchange a lump sum for a guaranteed paycheck that starts within 30–365 days—objective, simple, and pension-like. This guide shows how SPIAs work, the design choices that change your monthly amount, and how to compare carriers to lock in the strongest guarantees.
Compare the Best Immediate Annuities for Monthly Income
We’ll quote top SPIA payouts (single or joint life), refund options, and COLA increases across 100+ carriers.
Check Immediate Income Options in Minutes
Use the tool below to explore lifetime income illustrations. We’ll finalize exact monthly amounts for your state, age, and payout design.
What Makes the Best Immediate Annuity for Monthly Income?
- Age & gender: Older ages and male mortality generally produce higher initial payouts (joint-life pays less than single-life).
- Payout design: Life-only (max income), life with period certain (e.g., 10 or 20 years), cash-refund, or installment-refund.
- COLA option: Choose level payments or add a 2%–3% cost-of-living increase; COLA lowers year-one income but helps long term.
- Carrier strength: Ratings and current pricing vary by insurer—comparing multiple A-rated companies matters.
- State rules & taxes: Availability and withholding rules can affect net cash flow.
Common SPIA Designs Compared
| Design | Income Level | Guarantee | Who It Fits |
|---|---|---|---|
| Life-Only | Highest | Ends at death (no refund) | Max income now; no need for beneficiary refund |
| Life with 10–20 Yr Certain | High | Pays at least for the certain period | Wants strong income with a minimum payout window |
| Life with Cash-Refund | Moderate | Unused premium returned upon death | Wants beneficiary protection plus lifetime income |
| Life with COLA (e.g., 2%) | Lower first year | Income rises each year | Concerned about inflation over a long retirement |
| Joint-Life (w/ or w/o period certain) | Lower than single-life | Pays while either spouse is alive | Couples prioritizing survivor income |
Example: Immediate Monthly Income
Illustrative only—actual results vary by carrier, rates, and state.
- $500,000 premium, single-life, age 70: Level SPIA often produces higher year-one income than designs with refund/COLA.
- $500,000 premium, joint-life 100%, age 68/66: Expect a lower initial payment vs single-life, but income lasts for both lives.
- Add 2% COLA: First-year check drops, but annual increases help purchasing power if you expect a longer retirement.
Why SPIA Is Often the Best Immediate Annuity for Monthly Income
- Starts now: Income begins within 12 months—no deferral required.
- Maximizes guaranteed dollars today: Compared with other annuity types, SPIA typically delivers the largest immediate lifetime payout per dollar.
- Simple and transparent: No market risk or complex crediting; just a guaranteed paycheck backed by the insurer.
Alternatives If You Don’t Need Income Immediately
- Deferred Income Annuity (DIA): Start later (e.g., age 75–80) for higher future payouts.
- Fixed Indexed Annuity with Income Rider: Potential to defer and earn step-ups before activating lifetime withdrawals.
- MYGA / Fixed Annuity: Lock a guaranteed rate now; consider converting to income later. See current fixed annuity rates.
Design Tips to Maximize Your Monthly Check
- Choose the right guarantee: Life-only pays the most; adding refund/period-certain reduces the initial amount.
- Quote multiple carriers: Payouts vary day-to-day—bidding across insurers can materially increase income.
- Coordinate with Social Security: Use SPIA to bridge cash flow while delaying Social Security for a larger benefit. Explore our lifetime income planning.
- Mind taxes: Non-qualified SPIAs often receive exclusion-ratio tax treatment; IRAs are taxed as ordinary income when paid out.
Helpful resources:
FAQs: Best Immediate Annuity for Monthly Income
Which SPIA design pays the most monthly income?
Life-only generally pays the highest. Adding guarantees (period certain or refund) or COLA lowers the first-year amount in exchange for protections or inflation adjustments.
Can I get joint-life income for my spouse?
Yes. Joint-life pays while either spouse is alive; you can choose 100%, 75%, or 50% continuation to the survivor.
Will my income ever go down?
SPIA payments are fixed by contract. Level designs remain level; COLA designs increase each year by the chosen percentage (or CPI if available).
What if I die early?
Life-only stops at death. If beneficiary protection is important, consider period-certain, cash-refund, or installment-refund designs.
How fast can income begin?
Immediate annuities typically start within 30–365 days of issue. We’ll align the first payment date to your cash-flow needs.
Lock In the Best Immediate Monthly Income
We’ll shop 100+ carriers and show you single vs. joint life, refund options, and COLA trade-offs—side by side.
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