How much would a $300,000 annuity pay monthly if bought at age 65?

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a day ago

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If you're trying to decide whether a $300,000 annuity makes sense for your retirement portfolio, it may help to know what your monthly payments could be.
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Retirement planning has become increasingly challenging as Americans grapple with today's economic issues, which include persistent inflation and an increasingly unpredictable stock market. What many retirees and soon-to-be retirees are discovering is that their traditional 401(k) and IRA balances might not stretch as far as they once hoped, prompting a fresh look at guaranteed income strategies. And, that's where annuities, which are insurance products that offer predictable, often lifelong income streams that can't be derailed by market downturns or economic uncertainty, come into play.
With an annuity, you hand over a lump sum to an insurance company in exchange for guaranteed monthly income for the remainder of your life. This offers a straightforward way to eliminate guesswork from your retirement budgeting, and today's elevated interest rate environment means insurance companies can offer significantly more attractive monthly payouts than they could in recent years. So, buying an annuity in this economic landscape offers the opportunity to lock in favorable rates and potentially maximize your lifetime income benefit.
If you're considering converting a portion of your retirement savings into guaranteed monthly income, a $300,000 annuity generally represents a substantial but often achievable investment. This amount could provide meaningful financial security while allowing you to maintain other investments. Exactly how much monthly income can you expect from this investment if it's purchased at age 65, though? That's what we'll examine below.
Find out how much retirement income an annuity could offer you now.
How much will a $300,000 annuity pay monthly if bought at age 65?
In general, the monthly income you'll receive from a $300,000 annuity depends heavily on your age, gender, the type of annuity you purchase and current interest rates at the time of purchase. That said, though, here's what a 65-year-old retiree could expect to receive from a $300,000 immediate fixed annuity, according to an analysis of Cannex data by Annuity.org:
A 65-year-old man: About $1,942 per month
About $1,942 per month A 65-year-old woman: About $1,861 per month
About $1,861 per month Joint-life annuity (covers both spouses): About $1,684 per month
Why the variation? For one, annuity payouts are calculated based on life expectancy. Because women tend to live longer than men, insurance companies spread their payments out over a longer period, resulting in slightly smaller monthly checks. Similarly, a joint annuity provides income for as long as either partner is alive, so the insurer assumes a longer payout period, which reduces the monthly amount.
Interest rates also play a significant role. The higher the prevailing interest rate environment when you buy the annuity, the more income the insurer can confidently generate from your premium. As of mid-2025, fixed annuity rates remain higher than they were during the ultra-low rate years of the 2010s and early 2020s, making this a relatively favorable time to consider purchasing.
The type of annuity matters, too. The figures above are for immediate fixed annuities, which begin paying out right after purchase. If you opt for a deferred annuity that begins payments years down the line or choose one with additional features like inflation protection or a guaranteed period of payments, your monthly amount will differ, sometimes significantly.
Adding optional features and riders can also result in lower monthly payments. Cost-of-living adjustments, for example, help your payments keep pace with inflation over time, while guaranteed minimum payout periods ensure your beneficiaries receive some benefits even if you die shortly after purchase.
Explore your annuity options and find the right fit today.
What else should you consider before buying an annuity?
While the idea of a reliable monthly income is appealing, annuities are not a good fit for every retirement portfolio. So, before you commit $300,000 to an annuity, it's important to consider how it fits into your broader retirement strategy. Here's what to consider before buying one:
Liquidity trade-offs: Annuities provide income but tie up your money. Once you purchase a fixed immediate annuity, that lump sum typically can't be withdrawn. That makes annuities great for predictable income, but less ideal
Annuities provide income but tie up your money. Once you purchase a fixed immediate annuity, that lump sum typically can't be withdrawn. That makes annuities great for predictable income, Tax considerations: If you purchase your annuity with pre-tax retirement dollars (like from a traditional IRA), your monthly payments will be taxed as ordinary income. If you use after-tax dollars, only the interest portion is taxable. Understanding how your annuity income will be taxed is critical for budgeting.
If you purchase your annuity with pre-tax retirement dollars (like from a traditional IRA), your monthly payments will be taxed as ordinary income. If you use after-tax dollars, only the interest portion is taxable. Understanding how your annuity income will be taxed is critical for budgeting. Inflation risk: Fixed annuities offer predictable payments, but those payments don't rise over time. Unless you choose a product with cost-of-living adjustments (COLAs), your purchasing power may shrink annually.
The bottom line
If you're age 65 and thinking about buying a $300,000 annuity, you could expect to receive somewhere between $1,684 and $1,942 per month, depending on your gender and whether you're purchasing alone or as part of a couple. Those types of payments could make a big difference in your retirement budget, especially considering that they're guaranteed.
Still, annuities are just one piece of the retirement income puzzle. The big draw is that they offer security, but it's important to remember that they also come with trade-offs in terms of flexibility and inflation protection. So, before committing your cash, take time to consider your full financial picture to ensure that an annuity is the right investment for you.