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Immediate Annuity Calculator

An immediate annuity is a product sold by insurance companies that is designed to provide you with an income stream for life. The income, by definition, is designed to start immediately, although some immediate annuities allow you to defer payments for up to one year. It is very important to remember that once you set up an immediate annuity, you no longer control the money you put in it. Likewise, while the income stream is guaranteed for your lifetime, an untimely death will not result in any money being returned to your estate. This calculator is designed to help you estimate your monthly payments from an immediate annuity.

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Definitions

Amount to invest
The amount you wish to invest in your immediate annuity.

Your life expectancy
The number of years you expect to live and receive payments.

Annual rate of return
The annual rate of return for the immediate annuity.

Frequency of payments
How often payments are made to you from the immediate annuity. Options include monthly, quarterly and annually. This calculator assumes that your distribution occurs at the beginning of each period.

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.