If you have $250,000 set aside for retirement, you’re probably wondering how much income that could generate safely — without worrying about running out of money.
Annuities are one of the most effective tools for this. Whether your funds are in an IRA, 401(k), TSP, or brokerage account, a $250,000 annuity can be structured to provide guaranteed income for life — much like a personal pension.
Let’s look at what that payout looks like today and how you can maximize it depending on your age and retirement goals.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using our annuity calculator.
Immediate Income: What $250,000 Pays Right Now
For a 60-year-old couple taking immediate joint lifetime income, the highest payouts today are around $16,363 per year — or about $1,363 per month.
That’s based on current rates from top-rated carriers like Prudential, Corebridge, Nationwide, and Ameritas.
Even if your account balance eventually runs out, your income continues for life — that’s the power of an income rider or lifetime income benefit.
💡 Pro Tip: An income rider is ideal if your goal is maximum lifetime income, not principal preservation. Your balance may eventually go to zero, but your income never stops.
Deferring 2 Years Can Boost Your Income
If you’re 60 now and plan to retire at 62, deferring income just two years can significantly increase your payout.
For example, companies like Clear Spring and Corebridge offer annual payouts around $19,500, up from $16,000 — that’s roughly a 20% income boost just by waiting two years.
That’s because your benefit base grows at a guaranteed 8% rate during the deferral period. The longer you let it grow, the higher your eventual lifetime income.
👉 Thinking about retiring in the next few years?
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Waiting Until Age 65: Even More Growth
If you hold off until age 65, the income can climb to around $26,000 per year — roughly $2,166 per month.
Carriers like Nationwide shine here, offering some of the strongest payouts for retirees who wait five years or more before activating income.
This strategy pairs perfectly with Medicare eligibility, reducing health insurance costs while maximizing your guaranteed income later.
💡 Pro Tip: The sweet spot for most retirees is between ages 62–67 — when income riders compound most effectively and Social Security benefits also peak.
Waiting Until 70: Maximum Lifetime Payouts
If you’re able to defer income until age 70, your $250,000 annuity could pay around $40,000 per year — or over $3,300 per month for life.
That’s the result of compounding growth and a higher withdrawal rate (typically around 6.8%). By this point, your benefit base could grow to nearly $583,000 contractually.
Even if the market underperforms, your guaranteed benefit base and lifetime income are locked in — that’s the security annuities provide.
Understanding Your Options: SPIA, DIA, MYGA, or Income Rider?
There are several ways to structure a $250,000 annuity depending on your goals:
- SPIA (Single Premium Immediate Annuity):
Best for guaranteed payments starting immediately. Irrevocable once purchased. - DIA (Deferred Income Annuity):
Similar to a SPIA, but DIA payments begin later (e.g., 5–10 years from now). - MYGA (Multi-Year Guaranteed Annuity):
Works like a high-yield CD, offering fixed interest rates (currently around 5–6%) without stock market risk. - Indexed Annuity with Income Rider:
The most flexible option. Provides guaranteed lifetime income with growth potential and deferral bonuses.
👉 Want help choosing the right one?
Book a free consultation with me
Why the Right Advisor Matters
Many agents will only show you one or two products — often the ones that pay them the highest commissions.
As a fiduciary, I show every available option, regardless of my compensation. My goal is to help you make an informed, transparent decision that puts your interests first.
When we meet, I’ll share my screen, compare rates live, and walk you through what your lifetime income could look like — customized to your exact situation.
Conclusion
A $250,000 annuity can provide between $1,300 and $3,300 per month in guaranteed income, depending on your age, timing, and contract type.
The key is choosing the right structure and carrier for your retirement timeline. Whether you want immediate income or plan to defer for maximum growth, today’s rates make annuities one of the most reliable ways to secure lifetime income.
Need help with finding the best annuity for your retirement?
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On the call, I can help you:
- Determine what type of annuity is best for you
- Find the highest paying annuities for your unique situation
- Answer any other questions you may have
Answer any other questions you may haves