Income Annuity Calculator
The Income Annuity Calculator helps you see exactly how your savings can translate into a steady monthly paycheck for life. At Diversified Insurance Brokers, we’ve spent decades designing retirement income plans and comparing products from 100+ top-rated carriers. Use the calculator below to explore potential payouts, then our team can fine-tune a strategy that fits your age, timing, and goals.
What This Calculator Shows
- Guaranteed Monthly Income: Based on your premium amount, age, and start date.
- Single or Joint Life Options: Project income for your lifetime, or both spouses.
- Start-Now vs. Defer: Compare immediate income to higher payouts if you wait.
- Payout Styles: Life only, period certain, refund options, and more.
Who It’s a Good Fit For
- Retirees who want a predictable monthly paycheck they can’t outlive.
- Couples who need joint lifetime income that continues for a surviving spouse.
- Savers who prefer protection from market volatility and sequence-of-returns risk.
- People replacing a lost pension or filling a Social Security income gap.
Why Consider an Income Annuity
- Guaranteed Payments: Turn part of your assets into lifetime income.
- Customization: Choose start date, survivor benefits, and period-certain options.
- Principal Protection: Many designs shield your income from market swings.
- Tax Deferral: In qualified accounts, growth remains tax-deferred until withdrawn.
Example Scenarios
- Immediate Income: A 67-year-old allocates $250,000 and starts payments in 30–60 days. The calculator estimates a steady monthly benefit for life, with optional refund or period-certain features to protect beneficiaries.
- Deferred Start: A 60-year-old plans to begin income at 67. Deferring increases the projected payout, which the calculator shows side-by-side with “start now.”
- Joint Life: A couple elects joint-and-100% survivor. The monthly benefit is slightly lower than single life, but payments continue for as long as either spouse lives.
Tips for Using the Calculator
- Try multiple start dates to see how deferring affects lifetime income.
- Compare single vs. joint to understand trade-offs between payout size and survivor protection.
- Test different premium amounts to align guaranteed income with your fixed monthly expenses.
- Review refund or period-certain options if leaving funds to heirs is important.
How We Help
Calculator estimates are a great starting point. We go further by shopping real-time rates across 100+ carriers, explaining contract features in plain English, aligning income with your budget and taxes, and structuring single or joint payouts to fit your retirement plan. Our goal is simple: secure the monthly income you need, for as long as you need it, with clarity and confidence.
FAQs: Income Annuity Calculator
What does the income annuity calculator estimate?
It estimates guaranteed lifetime or period-certain income based on your premium amount, age(s), state, product type (SPIA/DIA/FIA with income rider), start date, and options like single vs. joint life or COLA increases.
Which inputs matter most for my payout?
Age at income start, single vs. joint life, deferral length, premium size, payout options (period-certain, cash-refund), and whether you add a cost-of-living adjustment (COLA). State availability and carrier pricing also affect results.
What’s the difference between SPIA and DIA?
SPIA (Single Premium Immediate Annuity) starts payments within 12 months. DIA (Deferred Income Annuity) starts later; the longer you defer, the higher the guaranteed payout typically is at start.
Can the calculator show joint-life income for a spouse?
Yes. Enter both ages to see joint-life options (e.g., 100%/75%/50% survivor). Joint income protects two lifetimes but generally reduces the initial monthly amount versus single-life.
What do “period-certain” and “refund” options do?
Period-certain guarantees payments for a minimum number of years (e.g., 10 or 20), even if death occurs early. Cash-refund returns the unpaid premium balance to beneficiaries. These guarantees typically lower the starting payout.
Should I add an inflation (COLA) increase to payments?
COLA options (e.g., 2%–3% annually) start lower but rise each year to help offset inflation. The calculator can compare level vs. inflation-adjusted income side by side.
Are estimates guaranteed or will they change?
They are estimates. Final offers depend on carrier rates at application/issue, state approval, and the exact features selected. We provide compliant carrier illustrations before you commit.
How are payouts taxed?
Qualified funds (IRA/401(k)) are generally taxed as ordinary income when paid. Non-qualified funds use an exclusion ratio (part principal, part taxable gain). Consult a tax professional for your situation.
Do income annuities have fees or market risk?
SPIAs/DIAs generally don’t have explicit ongoing fees; pricing is embedded in the payout. Payments are guaranteed by the insurer and aren’t affected by market volatility, subject to the insurer’s claims-paying ability.
Can I change or stop payments later?
Income annuities are designed for irrevocable, guaranteed income. Liquidity is limited; choose refund or period-certain features up front if beneficiary protection is important.
Disclaimer: Product features and availability vary by state and carrier. Estimates are educational, not advice. Review your personalized illustration for guarantees, definitions, and limitations.
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About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
