How Much Does a $500,000 Annuity Pay Per Month?

A $500,000 annuity pays $2,500–$3,250/month at age 65. Full payout estimates by age with current SPIA and MYGA rates.

About this page

Written by Brent Meyer, Founder, SafeMoney.com.

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Methodology and assumptions

The page presents illustrative SPIA payout ranges and MYGA rate ranges as displayed; it does not represent a dated quote from a specific carrier.
The displayed MYGA interest examples apply the shown annual rate range to a $500,000 premium and divide by 12 for a simple monthly-interest illustration; actual contract crediting and distributions can differ.
SPIA lifetime income, MYGA account-value crediting, and FIA rider values are different measurements and should be compared only with like-for-like carrier illustrations.
Actual quotes vary by age, state, carrier, payout option, underwriting, contract terms, and purchase date; the ranges are not live rates or a forecast.
Joint-life, refund, and period-certain protections generally change the initial payment, and a life-only payment can stop at death.
State guaranty-association limits, eligibility, and coverage terms vary. Do not treat a general limit example as a guarantee of coverage.

Sources

FINRA: Annuities — Investor guidance on annuity types, costs, and risks
IRS Publication 575: Pension and Annuity Income — Federal tax treatment reference
National Organization of Life and Health Insurance Guaranty Associations — State guaranty-association information and limitations

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