June 9, 2015

Single Life Annuity Rates as of April 2015


I got the annuity rate here out of the Annuity Shopper Buyers Guide April 2015 posted at ImmediateAnnuities.com


Average single life annuity rates from a $100,000 premium :



Life 3% cola 20 year
50 M $397 $249 $387
50 F $380 $233 $374
55 M $430 $280 $412
55 F $409 $263 $398
60 M $474 $324 $441
60 F $447 $300 $426
65 M $534 $383 $472
65 F $499 $352 $458

I have listed the average rates for people 50, 55, 60 and 65 years old either male or female.

So for example if you're a 65 year old male and buy an annuity with a 3% cola you'll get $383 a month for the first month with a $100,000 premium.

The 3 columns are : a simple single life, life with 3% cost of living adjustment (cola) and a 20 year certain payment which guarantees to pay out at least 20 years or life whichever is longer.

Annuities with the 3% cola pay about 30-40% less than a regular life annuity.

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3 comments:

  1. Thanks for this informative post, Jim. My calculations show the $100,000 for a 50yr.old Male annuity breaking even at age 70 at 0%, 76 at 2%, 83 at 3% and 96 at 4%. By way of comparison, a 50yr.old Male has a life expectancy of 81, and if he makes it to 70 it increase to 85. I'm watching this (annuity) type of investment closely, still not finding a good entry point for me to take some risk off the table and automate a portion of income.

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  2. JayCeezy,

    Your math looks about right. Given the low interest rates right now I'm thinking annuities are probably not a good way to go. May make more sense to sit on some cash for a bit and wait till rates go up some.

    Jim

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  3. Yes, that is all I can do for now; in the '90s annuities were throwing off 6% (of course the S&P500 went up 20%+ for 5 years in a row). I hope I don't run out of money before I run out of life, but both will probably happen before annuities will make sense for me.:-) Thanks again for your occasional status on annuities, it is very interesting to me.

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