A quarter of a million dollars is a serious sum, and turning it into a reliable monthly check is exactly what annuities are built for. The size of that check depends on a few clear factors.
The factors that set your payment
- Your age when income starts — waiting generally raises the payment.
- Single life or joint life with a spouse.
- Lifetime income versus a set period.
- Optional features, like a death benefit or period certain, which usually lower the payment.
- The insurer's rates when you buy.
Deferred income can pay more
Letting the annuity grow for several years before turning on income often results in a meaningfully higher monthly payment, because the money grew and you are older when payments begin.
Income riders
Some fixed indexed annuities offer an income rider, usually for an annual fee, that guarantees a lifetime withdrawal amount regardless of market performance. Guarantees depend on the claims-paying ability of the issuing insurer.
Why you should compare quotes
Payouts for the same $250,000 can differ noticeably between companies, and rates change over time. Two or three current quotes, based on your actual age and chosen options, will tell you far more than any general estimate.
The bottom line
A $250,000 annuity can become a dependable monthly check, and the exact amount is knowable — it just takes a personalized quote based on your age, timing, and payout choices.
Learn about annuitiesThis article is for educational purposes only and is not tax, legal, or investment advice. Insurance and annuity products are not deposits, not FDIC insured, and not guaranteed by any bank. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurer. Product features vary by insurer and state.
