How Much Does a $3 Million Annuity Pay
Over 100 Carriers to Quote From. Here are a few of them!
How much does a $3 million annuity pay? For retirees and pre-retirees, the goal is turning savings into a reliable paycheck that lasts a lifetime. At Diversified Insurance Brokers, we compare payout options from 100+ top-rated carriers so you can see what guaranteed income looks like at different ages. Below you’ll find payout examples, a lifetime income calculator, and resources to help you decide if a personal pension through annuities makes sense for you.
See Your $3,000,000 Annuity Income
Compare lifetime payout options and request a personalized illustration.
Or preview today’s top fixed & bonus annuity rates:
Current Annuity Rates | Annuities Overview
Lifetime Income Calculator
What a $3,000,000 Annuity Can Pay (Examples)
Payouts depend on age, product, and structure (single vs. joint life, period certain, etc.). Here are sample guaranteed income figures at common retirement ages:
- Age 60 – 8.0% payout rate → $240,000/yr (~$20,000/mo)
- Age 65 – 8.2% payout rate → $246,000/yr (~$20,500/mo)
- Age 70 – 8.5% payout rate → $255,000/yr (~$21,250/mo)
Notes: Payout rates vary by carrier, product, rider features, and state availability. Joint-life and enhanced features may adjust the amount.
Why Create a “Personal Pension”
- Lifetime security: Payments continue regardless of market performance or longevity.
- Principal protection: Fixed and fixed indexed annuities guard against losses.
- Planning confidence: Know your baseline income and coordinate the rest of your assets with clarity.
- Spousal coverage: Joint-life designs can protect two lifetimes.
How Payouts Are Calculated
- Age: Starting later usually means higher payout rates.
- Product type: Immediate income annuities, deferred annuities, or FIAs with income riders all differ.
- Guarantees: Period-certain options, inflation riders, or enhanced benefits affect payouts and fees.
- Single vs. joint life: Joint income typically reduces the annual payout to cover two lives.
Coordinating with Retirement Income
Many clients combine annuity income with pensions, Social Security, or RMDs. Guaranteed payments cover essentials, giving you flexibility with investment withdrawals. To see broader strategies, visit our Annuities Overview or review Current Annuity Rates.
Who This Strategy Fits Best
- Retirees who want guaranteed lifetime paychecks.
- High-net-worth investors seeking to lock in safe income.
- Couples prioritizing joint income with beneficiary protections.
- Those who prefer simplicity and predictability over market swings.
Not sure whether to annuitize all $3 million or just a portion? Use the calculator above to test scenarios and see how guaranteed income fits your larger plan. You can also explore related examples here: personal pension options.
FAQs: How Much Does a $3 Million Annuity Pay?
How much does a $3 million annuity pay per month?
It depends on age at income start, single vs. joint-life, product type (SPIA, DIA, or fixed indexed with an income rider), deferral length, and carrier rates. Older ages and single-life options pay more; joint-life and earlier start ages pay less per month.
Which payout option typically provides the highest guaranteed income?
Single-life immediate income or a deferred start date (more deferral time) typically produces a higher guaranteed payout. Joint-life income protects a spouse but generally lowers the monthly amount.
How do single-life and joint-life options change the income?
Single-life maximizes the monthly payment. Joint-life continues income for a surviving spouse, so the payout is reduced to account for two lifetimes. You can also choose survivor continuation percentages (e.g., 100%, 75%, 50%).
Are there options to protect beneficiaries?
Yes. Cash-refund or period-certain features can protect beneficiaries if death occurs early. Some income riders also include minimum payout commitments. These features generally lower the starting monthly income.
What about liquidity if I need access to funds?
Many contracts allow limited withdrawals, and some riders offer enhanced liquidity for qualifying events. However, maximizing guaranteed lifetime income usually means trading off some liquidity. We’ll show side-by-side options.
How are payouts from a $3M annuity taxed?
Qualified funds (IRA/401(k)) are typically fully taxable as ordinary income when paid out. Non-qualified funds are taxed on the gain portion per the exclusion ratio.
Can I add inflation protection to the income?
Some annuities offer fixed COLA increases or inflation-adjusted options. These start lower initially but can help payments keep pace over time. We’ll compare level vs. inflation-adjusted income.
How do I get personalized payout numbers across carriers?
Provide your age(s), state, premium amount, desired start date, and whether income is single or joint-life. As an independent brokerage, we compare 100+ carriers and deliver a compliant illustration set tailored to you.
See Your Exact Numbers
We’ll run comparisons with 75+ carriers and build you a personalized income plan.
Prefer to Book a Time?
Choose a time to review $3,000,000 annuity income options and compare carriers.
