How much will a $750,000 annuity pay each month in 2026?

Retirement planning involves converting savings into reliable income to cover expenses throughout one's lifetime. Annuities can provide this type of dependable income. A $750,000 annuity could potentially cover a significant portion of monthly retirement expenses, especially when combined with Social Security, pensions, or withdrawals from other retirement accounts. The exact monthly payment depends on various factors, including the age when payments begin, gender, and the type of annuity.

For immediate annuities, the monthly payment at different ages in 2026 could range from about $3,975 for a 60-year-old woman to $8,625 for an 80-year-old man. The payments decrease as the starting age increases because the insurer expects to make payments for a longer period, which lowers the monthly benefit. Gender affects the estimates as well, as women typically have longer life expectancies, resulting in slightly lower monthly payments.

The payout structure also impacts the monthly income. For example, a single-life annuity guarantees payments for the annuitant's lifetime but offers less financial protection compared to annuities that include guarantees or cover two lives. These types of annuities may reduce the monthly benefit but can provide important protections for surviving spouses or heirs.

Choosing the right type of annuity depends on individual needs and goals. A single-life contract may maximize immediate income but may offer little or nothing to a spouse or heirs after the annuitant's death. Thus, it is essential to consider factors such as age, gender, payout structure, and liquidity when selecting an annuity to ensure it fits well within the broader retirement plan.