I got the rates right out of the Annuity Shopper Buyers Guide April 2015 posted at ImmediateAnnuities.com
I also then used this calculator to estimate the equivalent interest rate you'd have to earn to equal the annuity payments.
Here is the table for a $100,000 premium :
Period | Monthly | Total | % rate |
5 | $1,680 | $100,800 | 0.31% |
10 | $890 | $106,800 | 1.32% |
15 | $643 | $115,740 | 1.99% |
20 | $524 | $125,760 | 2.38% |
25 | $454 | $136,200 | 2.61% |
30 | $407 | $146,520 | 2.73% |
The rates are the average monthly payments and then I summed up the total that you'd get out.
Given the low rates they're quoting there for the shorter term annuities you should really NOT buy a 5 year annuity. You'd come out ahead just laddering CDs from Ally bank. You could spend out about $1707 a month if you just bought 4 laddered CDs of 1,2,3,4 years. I didn't do the math but I am guessing you can beat the 10 year annuity with CD ladders too. This assumes you don't have tax reasons that make the annuity preferable.
--