Brad Rhodes: How much annuity income can I expect to receive?
Published 12:00 am Sunday, April 2, 2023
Annuities are a great way to ensure your financial security in the long term. Annuities provide regular payments that can help you pay bills and cover other expenses while also helping protect against inflation and market downturns. Annuities are popular with many retirees as they offer a steady income stream that can last throughout retirement.
The question is, how much income does an annuity payout on average?
The answer depends on several factors, including what type of annuity you purchase and the terms of the agreement. Annuities typically guarantee a fixed payment amount or can be variable, depending on the performance of certain investments or indexes. Annuities are also available with riders that increase the amount of income you receive.
If you’re purchasing a fixed annuity, the amount of income is predetermined by the terms of the agreement and is typically based on your age and the length of time over which payments will be received. Annuities with guaranteed payouts usually offer higher rates than variable annuities, which depend largely on investment performance. Annuity income may also be increased by adding riders like inflation protection or other options that guarantee additional payments.
Generally, an annuity can provide anywhere from several hundred dollars to several thousand dollars a month in retirement income, depending on the type of product purchased and any riders added. As with most investments, it’s essential to consider all of your options before purchasing an annuity to ensure you’re getting the best deal.
Maximizing your payout
In addition, there are several steps you can take to maximize your annuity income and get more out of your investment. Annuitants should review their policy details regularly, as rates may change over time. Annuitants should also consider adding riders to their policy if it suits their particular circumstances. These additional features may help increase the income received from an annuity. Annuitants may also increase the amount of money they receive by taking a lump sum distribution option or electing periodic payments.
Overall, as stated above, the average income from an annuity will depend on the type of product purchased, any added riders, and other factors. Annuity income may range from several hundred dollars to a few thousand dollars per month, depending on the type of annuity and any riders added. By reviewing policy details regularly and adding riders to their policy, annuitants may be able to increase the amount of money they receive from an annuity. Annuities are a great way to ensure your retirement financial security, so make sure you understand your options before investing.
If you’re considering an annuity as a part of your retirement income, it’s essential to understand your options. Contact an annuity expert today to learn more about the different types of annuities and how they can help secure your financial future.
Brad Rhodes lives in Lexington and is a member of Syndicated Columnists.