What factors affect the annuity payout amount?

The annuity payout amount is primarily affected by interest rates, life expectancy, and the purchase amount.

Higher interest rates at the time of purchase lead to higher payouts since the annuity provider can earn greater returns on invested capital. Older age and poorer health, resulting in lower life expectancy, also boost payouts. Use the Annuity Calculator to understand how the interest rate impacts the returns on your investment.

The more money you put into the annuity purchase, the larger your payouts will be. Opting for shorter guaranteed payout periods rather than lifetime income increases monthly amounts. Adding joint or survivor payout options reduces the payment amount against that of a single life.