A $500,000 SPIA at 65 Could Pay $2,750 Monthly for Life

Single premium immediate annuities convert lump sums into guaranteed lifetime income — here's the math behind longevity protection

The Details

SPIAs become actuarially favorable after age 75. A 75-year-old male gets roughly $3,750/month per $500K — 36% more income than at 65 — because the insurance company expects fewer payment years.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.