While inflation has been cooling, the higher prices of essentials are still weighing on household budgets after years of sticky inflation, and other economic hurdles and uncertainties are also looming, adding to the financial struggles people are facing right now. And, when you factor in the recent stock market downturns, which have been making even seasoned investors uneasy, its easy to see why many seniors and soon-to-be retirees are looking for ways to add predictable income streams to their retirement plans.
That, in turn, has led to renewed interest in a unique solution: annuities. These financial products offer something thats hard to find elsewhere: monthly payments you can count on, no matter how long you live or what the markets do. At their core, annuities turn a lump sum of money into a steady income stream, which is a powerful value proposition for those approaching retirement age, especially when savings are limited and the goal is to stretch those dollars as far as possible.
But knowing exactly what youll get back in return is an important part of determining whether an annuity aligns with your retirement plans. So what can you expect if youre planning to invest $250,000 in an annuity? Below, well take a closer look at how much the monthly payments would be and explore how to make the most of your investment.
Are you sitting on $250,000 and wondering how it could generate reliable monthly income in retirement? Well, you’re not alone! Many soon-to-be retirees are looking at annuities as a way to create predictable income streams, especially with recent market volatility making traditional investments feel like a rollercoaster ride.
As someone who’s researched retirement options extensively, I’ve found that annuities can be a powerful tool – but the monthly payouts vary dramatically based on several factors. Let’s dive into what you can realistically expect from a $250,000 annuity investment in today’s market (updated for September 2025).
What Can You Expect From a $250,000 Annuity? The Numbers Revealed
If you’re considering putting $250,000 into an annuity, here’s the bottom line your monthly payments could range anywhere from about $1,200 to more than $2,600, depending on several key factors
To give you a clearer picture, I’ve compiled the most recent data (as of September 2025) showing what a $250,000 immediate lifetime annuity would pay:
Monthly Payouts for a $250,000 Immediate Lifetime Annuity
| Age | Male | Female | Joint Life |
|---|---|---|---|
| 60 | $1,633 | $1,458 | $1,345 |
| 65 | $1,633 | $1,574 | $1,430 |
| 70 | $1,835 | $1,747 | $1,555 |
| 75 | $2,151 | $2,006 | $1,734 |
| 80 | $2,641 | $2,425 | $2,023 |
Let’s break down a few examples to make this more tangible:
- A 65-year-old woman purchasing a $250,000 immediate annuity today would receive approximately $1,574 per month (about $18,888 annually) for life.
- A 65-year-old man with the same $250,000 investment would get roughly $1,633 monthly.
- A couple (both age 70) opting for a joint life annuity would receive about $1,555 monthly, continuing until both have passed away.
These figures represent the “life-only” option, meaning payments continue for your lifetime but stop when you die, with no payments to beneficiaries.
Why Do Annuity Payments Vary So Much?
I’ve noticed that many people get confused about why the monthly payments differ so drastically It’s not just random numbers – there’s actual math behind it! Here are the key factors that affect how much your $250,000 annuity will pay
1. Age When Payments Begin
This is probably the biggest factor. The older you are when payments start, the higher your monthly check. Why? Because the insurance company expects to make payments for fewer years.
For example, if you look at our table above, a 60-year-old man gets $1,633 monthly, while an 80-year-old man receives a whopping $2,641 – that’s more than $1,000 extra each month from the same initial investment!
2. Gender Matters (A Lot)
Women consistently receive lower monthly payments than men of the same age. This isn’t discrimination – it’s actuarial math. Women typically live longer than men, so the insurance company expects to make payments for more years.
Looking at the age 75 row in our table, a man receives $2,151 monthly while a woman gets $2,006 – about $145 less each month.
3. Single vs. Joint Life Policies
If you want payments to continue for your spouse after you die, you’ll need a joint life annuity. But there’s a tradeoff – your monthly payments will be lower.
A 70-year-old couple choosing a joint life annuity would receive about $1,555 monthly, compared to $1,835 that a 70-year-old man would get with a single life policy.
4. Type of Annuity
Our numbers above are for immediate annuities (which start paying right away). If you choose a deferred annuity, your money has time to grow before payments begin, potentially resulting in higher monthly income later.
5. Extra Features and Guarantees
If you add features like inflation protection or guaranteed minimum payment periods, your monthly payment will be reduced. For example, adding a 10-year certain period (which ensures payments to beneficiaries if you die early) might reduce your monthly payment by 5-15%.
Real-World Examples: How People Are Using $250,000 Annuities
To make this more relatable, let’s look at three real-world scenarios of how different people might use a $250,000 annuity:
Ellie’s Story: Maximizing Monthly Income
Ellie is 65 and recently retired. She wants guaranteed income she can’t outlive, so she invests $250,000 in an immediate single life annuity. This gives her $1,574 monthly ($18,888 annually) for as long as she lives.
She chose to maximize her monthly payments by not including death benefits or period certain guarantees. While this means her beneficiaries won’t receive anything if she dies early, Ellie prioritizes higher income now over leaving a financial legacy.
“I wanted to know I’d have income I could depend on for the rest of my life, without worrying about the ups and downs of the market,” says Ellie.
Nate’s Strategy: Waiting for Higher Payouts
Nate is 68 and invests $250,000 in an immediate lifetime annuity. His monthly payout is $1,685 ($20,220 annually). Even though he invested the same amount as Ellie, his monthly payout is higher because he’s older when payments begin.
“I like knowing I’ll have more income now, while I’m still healthy and able to enjoy it,” Nate explains.
Janelle and Victor’s Approach: Income for Two
Janelle and Victor (both 70) want to ensure neither outlives their retirement savings. They purchase a $250,000 joint life annuity paying $1,555 monthly ($18,660 annually) for as long as either of them lives.
While their payout is lower than what either would receive individually, they have peace of mind knowing the surviving spouse will continue receiving income.
“We wanted to know that whichever one of us lives longer will always have income coming in,” they explain.
Is a $250,000 Annuity Right for You?
An annuity isn’t the perfect solution for everyone. Here’s a quick rundown of when it might (or might not) make sense:
Consider an Annuity If:
- You want guaranteed income you can’t outlive
- You’re worried about market volatility
- You don’t want to manage investments in retirement
- You have a long life expectancy (especially if longevity runs in your family)
Maybe Skip the Annuity If:
- You don’t have enough savings (you need that $250,000 for other purposes)
- You have other pressing financial goals like debt repayment
- You have health issues that might shorten your life expectancy
- You need full access to your principal (annuities typically limit access)
Tips to Maximize Your $250,000 Annuity
If you’re leaning toward purchasing an annuity, here are some strategies to get the most value:
- Shop around aggressively – Rates vary significantly between providers. I’ve seen differences of $100+ per month for identical policies.
- Consider an annuity ladder – Instead of putting all $250,000 into one annuity, split it into multiple smaller annuities purchased over time to potentially benefit from rising interest rates.
- Be realistic about your health – If you have health concerns, certain annuity types might provide better value.
- Maintain balance – Consider keeping some retirement savings in more liquid investments for flexibility.
- Understand tax implications – With non-qualified annuities, part of each payment is tax-free return of principal, while the remainder is taxable income.
Current Annuity Rate Environment
It’s worth noting that annuity payouts are influenced by interest rates. As of September 2025, fixed annuity rates are offering returns as high as 6.90% for 7-year terms and 7.65% for 10-year terms, according to the latest data from Cannex.
This represents a favorable environment for annuity purchasers compared to the low-rate environment of the early 2020s.
The Bottom Line: What Will Your $250,000 Annuity Pay?
To summarize what we’ve learned, a $250,000 annuity could pay you anywhere from approximately $1,345 to $2,641 per month, depending primarily on:
- Your age when payments begin
- Your gender
- Whether it’s a single or joint policy
- The type of annuity and features you select
Before making any decisions, I strongly recommend consulting with a financial advisor who can analyze your specific situation and help determine if an annuity fits into your broader retirement strategy.
An annuity can be a powerful tool for creating reliable retirement income, but it’s just one piece of a comprehensive retirement plan. The right approach depends on your unique financial circumstances, goals, and needs.
Have you considered how a $250,000 annuity might fit into your retirement plan? What monthly payment would you need to meet your retirement income goals? I’d love to hear your thoughts in the comments!
Note: The payment amounts mentioned in this article are based on rates as of September 2025. Annuity rates change regularly, so it’s important to get current quotes when making your decision.
How to make the most of your annuity investment
Selecting the right annuity for your $250,000 investment is important, as it directly impacts your monthly payment, but it also requires careful consideration of both your immediate needs and long-term goals. Before committing to any annuity contract, consider these strategies to maximize your investment:
Shop around for the best rates: Annuity payouts can vary significantly between providers. Taking the time to compare quotes from multiple highly-rated insurance companies can result in substantially higher monthly payments over the life of your annuity.
Consider a laddering strategy: Rather than putting your entire $250,000 into a single annuity, you might divide it among multiple smaller annuities purchased at different times. This approach can help you benefit from potential future interest rate increases while still securing some income now.
Assess your health and family history: Insurance companies base their payout calculations on average life expectancies, but your personal health situation and family longevity history might suggest a different outlook. If you have health concerns that might shorten your life expectancy, certain annuity types might provide better value.
Balance guaranteed income with flexibility: While annuities provide income security, they typically limit access to your principal. Consider keeping some of your retirement savings in more liquid investments to maintain financial flexibility for unexpected expenses or opportunities.
Understand tax implications: Different annuity types have varying tax consequences. For non-qualified annuities, a portion of each payment represents a return of your principal and is tax-free, while the remainder is taxable as ordinary income.
A $250,000 annuity can be a powerful way to lock in monthly income during your retirement years, but the amount youll receive each month varies widely based on your personal details and the product you choose. Right now, you could expect anywhere from roughly $1,200 to over $2,600 per month, depending on factors like your age, gender and the annuity structure.
So, before purchasing an annuity, take time to understand all contract terms and compare options from multiple providers. With this type of careful consideration, an annuity can be a valuable tool for creating the stable income you need for a secure and comfortable retirement.
Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
Here’s what a $250,000 annuity could pay you each month
Right now, a $250,000 annuity could generate monthly payments ranging from about $1,200 to more than $2,600, based on Cannex market data analyzed by Annuity.org. This monthly payment range reflects how dramatically payments can vary depending on your age, gender and contract structure. Here are a few examples of what that could look like:
- A 60-year-old man with a $250,000 immediate fixed annuity could expect monthly payments of $1,476 currently. A woman of the same age with the same annuity could expect to receive slightly less ($1,430) each month due to a longer projected life expectancy.
- A 65-year-old man purchasing a $250,000 immediate fixed annuity could receive about $1,675 per month for life. The monthly payments for a 65-year-old woman with the same fixed annuity would be $1,550 per month currently, or about $125 less per month.
- A 70-year-old man who purchased a $250,000 annuity right now could expect monthly payments of $1,826 in return. A woman with the same contract might get around $1,726 monthly, or about $100 less.
- For those who are older when they begin taking payments — say, 75 or 80 — the monthly payouts increase, since the insurance company expects to pay over a shorter time frame. A 75-year-old man, for instance, could collect $2,134 per month.
The numbers shift further if you select a joint life annuity, which continues payments as long as either you or your spouse is alive. That added security often results in lower monthly income. For example, a joint life annuity for a couple purchased at age 60 would pay out an average of $1,315 per month right now — over $100 less than it would otherwise pay on a single policy for a man or woman of the same age.
If you decide to defer payments for several years to give the principal time to grow, though, your future monthly annuity income could rise considerably. But youll need to factor in how long youre comfortable waiting before you begin receiving payouts. And, other factors, like adding guarantees or inflation riders to your policy, can also impact the amount of the monthly payouts, as can the interest rate environment. If rates are elevated, insurers will typically offer higher monthly payments, but if rates are low, the monthly annuity payments tend to be lower, too.
How Much Does a $100,000 Annuity Pay Per Month?
FAQ
How much does a $250,000 annuity pay per month?
As of March 2025, a $250,000 single-life immediate annuity could pay more than $1,500 per month. Here’s a breakdown of annuities, how they work and how much a $250,000 annuity could pay. Before purchasing an annuity, consult a financial advisor to explore the best options for your retirement.
How much does a $600000 annuity pay per month?
As of August 2025, with a $600,000 annuity, you’ll get an immediate payment of $3,600 per month starting at age 60, $3,965 monthly at age 65, or $4,275 monthly at age 70. How much does a $700,000 annuity pay per month?
How much does an annuity pay per month?
An annuity provides guaranteed retirement income and can be a key part of a financial plan. However, annuity payments vary based on several factors, including whether they start immediately or are deferred. As of March 2025, a $250,000 single-life immediate annuity could pay more than $1,500 per month.
How much does an annuity pay a month for a 65-year-old woman?
A $250,000 immediate annuity with a lifetime payout could pay as much as $1,498 a month for a 65-year-old woman. The monthly payout calculation depends on several factors, including the start and duration of payments and the annuitant’s age and gender. Annuities can ensure you have income once you retire.
How much does a 2025 annuity pay per month?
As of August 2025, with a $200,000 annuity, you’ll get an immediate payment of $1,200 per month starting at age 60, $1,322 per month at age 65, or $1,425 per month at age 70. How much would a $250,000 annuity pay?
How much does a 5 million annuity cost?
As of August 2025, with a $5,000,000 annuity, you’ll get an immediate payment of $30,000 monthly starting at age 60, $33,041 monthly at age 65, or $35,625 monthly at age 70. Are annuities subject to RMD?
How much income will 250k generate per month?
How much is the monthly income on a 250000 annuity?
What is the biggest disadvantage of an annuity?
How much do you need in an annuity to get $1000 a month?
We’ll also assume you’re going to live approximately 18 more years to the average male life expectancy of 83 years. In order to withdraw $1,000 each month you would need roughly $192,000. If you exceeed your life expectancy and make it to the ripe old age of 90 you would need approximately $240,000.