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Use this Annuity Calculator to get a reliable payout estimate, compare payout options, assess inflation protection, and, see the total lifetime value of your investment.
An annuity is an insurance product designed to guarantee income. In exchange for a lump sum of money you get a paycheck for a predetermined amount of time. Cornell Law School defines an annuity as “long-term contracts between individuals and insurance companies that individuals typically enter into as part of retirement planning.”
To get an estimate with this lifetime annuity calculator, enter your: age, sex (used to estimate your life expectancy and how long payments might last), the age when you want income to start, investment amount, and whether or not you want your spouse to continue to get payments after you die.
The calculator will quickly get you different estimates, enabling you to compare payment options and assess the total lifetime value of your investment.
Find out how much lifetime income your savings could buy. Or, if you know how much income you need, learn what it will cost upfront. Annuity terms are defined below.
Annuities should be evaluated in the context of your detailed long term financial plan. Use this Annuity Calculator to estimate your payout, but don’t make a decision about the annuity without knowing exactly how much income you need, how much income you can afford, and evaluating your other options for securing income.
The Boldin Planner can help you answer these questions. The tool enables you to build a complete plan to help you make better financial decisions. Run a scenario with or without an annuity and assess your cash flow, out of money age, estate value and more.
Instead of calculating your annuity needs alone, you may want to consider all aspects of your retirement situation.
The Boldin Retirement Calculator can help you assess your annuity decision. This tool will allow you to make a decision with your overall retirement plan in mind.
According to investor.gov, there are three kinds of annunities: fixed (the insurance company promises you a minimum rate of interest and a fixed amount of periodic payments), variable (your payments will vary, depending on investment returns), and indexed (combines features of securities and insurance products).
However, there are actually many different kinds of annuities and a huge variety of riders that can apply to annuities like inflation protection, spousal coverage, return of premium, and more.
Annuity
An annuity is a financial product sold by insurance companies that provides a stream of payments over time to the purchaser (annuitant).
There are a lot of different flavors of annuity contracts and they can be complex. Yet, there are many benefits to the user. Including lifetime income and annual adjustments to your living expense.
Lifetime Annuity
A lifetime annuity is a financial product you can buy with a lump sum of money. In return, you will receive income for the rest of your life.
A lifetime annuity guarantees payment of a predetermined amount for the rest of your life. This is different from a term annuity which only pays you for a fixed amount of time.
Immediate Lifetime Annuity
An immediate annuity provides income to the purchaser that starts as soon as they deposit a lump sum.
The payments last for:
This is also referred to as a Single Premium Immediate Annuity (SPIA).
Many people roll over tax qualified funds into a “tax-deferred” immediate annuity. Often the user only pays taxes when they receive the monthly payment (so you pay taxes over time). They only pay taxes on their tax qualified deferred income payment.
This is different from a Deferred Lifetime Annuity where the purchaser pays in over time (or one lump sum). Read more about Deferred Lifetime Annuities in the following section.
Deferred Lifetime Annuity
A Deferred Lifetime Annuity is where the payments start at a predetermined future date. With a Deferred Annuity the purchaser pays in over time (or one lump sum). The money is then invested by the insurance company. It is invested until the stream of payments starts at some point in the future.
A Deferred Annuity is most often used when you think there will be an income need in the future, but not immediately. For example, if you have a job now, but foresee stopping work and still needing the income at a later date. Or, if you think medical or long term care costs will require extra income as you age.
Fixed Annuity
A fixed annuity pays a fixed rate of return. It is typically invested in lower risk fixed income products. For example, government securities and corporate bonds.
Variable Annuity
A variable annuity pays a variable rate of return. Variable annuities invest in riskier assets. For example, mutual funds that hold equities. Variable annuities can provide a higher rate of return, but they have more risk. It is possible for your monthly payment to fall.
Term Annuity
A term annuity is a financial product that guarantees payment for a specific period of time such as 5, 10 or 20 years.
Joint Annuitant
A joint annuitant is typically the spouse of the purchaser of an annuity (the annuitant). Often retirees who want to secure lifetime income will buy a joint annuity. This will secure payments for as long as either the annuitant or joint annuitant is alive.
Survivor Benefit
When people buy Joint & Survivor annuities that make payments for as long as either annuitant is alive. They can elect to change the size of the payment to the surviving annuitant when one of them passes away. The survivor benefit can be 100%, 75%, 66% or 50% of the original payment amount. It depends on what income amount the purchasers think will be necessary at that point in their lives.
Monthly Income
Enter the monthly amount you think you will need from an annuity to cover a gap in your retirement income. The Annuity Calculator will bring back quotes for what it would cost to buy this level of monthly income.
Lump Sum
Enter the savings you have available that you could convert to an annuity. The Annuity Calculator will tell you how much monthly income it would produce for the rest of your life.
A: A lifetime annuity calculator estimates the guaranteed income you can receive for the rest of your life in exchange for a lump-sum payment. It helps you compare options like joint annuities, inflation protection, and fixed vs. variable payments based on your inputs.
A: Just enter your age, sex, desired start date, lump-sum amount, and any spouse or inflation protection options. The tool will then estimate your monthly or annual payout, total lifetime value, and how different settings affect the outcome.
A: The calculator models common annuity types: fixed, variable, indexed, single premium immediate (SPIA), deferred annuities, joint annuities, and term annuities. You can also include riders like survivor benefits and inflation adjustments.
A: It gives you a detailed estimate of your income options in retirement. You can compare lump-sum vs. income need, see how inflation and joint payouts affect benefits, and decide whether an annuity fits into your overall plan.
A: It provides estimates—but deciding if an annuity suits you requires understanding your entire financial picture. Use it alongside a full retirement plan or consider a fiduciary advisor. The Boldin Planner lets you model annuities in context with cash flow, Social Security, and other assets.
A: An immediate annuity starts paying right away after a lump-sum is invested. A deferred annuity delays payments until a future date—useful if you don’t need income immediately or expect expenses later in retirement.
A: Yes. You can choose inflation protection options and set the survivor benefit percentage (e.g., 50%, 75%, 100%), so payouts adjust over time and/or continue to your spouse after you pass.
