SPIA Calculator
Get Your Customized SPIA Quote
If you’re considering a SPIA, use our exclusive calculator to find the best option for you.
- Lifetime income stream
- Applicable for IRAs, non-IRAs, and Roth IRAs.
- ZERO annual fees
- Period certain quotes
How do Single Premium Immediate Annuities work?
Single Premium Immediate Annuities (SPIAs) are categorized as fixed annuities and life insurance products, issued exclusively by life insurance companies and regulated at the state level. They offer a straightforward risk-transfer strategy to meet immediate income needs. The main factor determining SPIA pricing is your life expectancy (or combined life expectancies for joint policies) when payments begin.
- Zero Fees
- Guarantee periods from 5 to 30 years.
- Income can start as early as 30-days from issue date.
- A Cost of Living Adjustment (COLA) can be included.
Single Premium Immediate Annuities (SPIAs): Your Guaranteed Income Option—Right Now
Looking for a reliable, no-fuss income stream in retirement? A Single Premium Immediate Annuity (SPIA) may be just what you need.
What Is a SPIA?
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A one-time lump-sum purchase that provides a steady income beginning almost immediately—usually within 30 days to a year.
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Often considered an “off-the-shelf pension”—you pay once, the insurer guarantees your “retirement paycheck.”
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Ideal for retirees needing dependable income right away.
Key Benefits at a Glance
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Guaranteed Income for Life: Keeps paying as long as you live. Optional death benefits or “period certain” features allow continued payments to heirs.
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Simplicity: No ongoing management—fixed terms set from the start.
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Peace of Mind: Reduces the risk of outliving your savings by converting them into a dependable income.
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Optional Inflation Protection: Some SPIAs offer automatic annual increases (e.g., 1–5%) or CPI-based adjustments.
Be Aware of These Drawbacks
| Downsides | Details |
|---|---|
| Low Liquidity | Once purchased, your lump sum is usually locked in—with few exceptions and possible penalties. |
| Inflation Risk | Fixed payments may lose value over time unless inflation protection is elected. |
| Limited Inheritance | Unless a “period certain” or joint benefit is chosen, payments typically stop upon your death. |
| Interest Rate Sensitivity | SPIA payouts depend on current rates—higher rates yield better payouts, but those may drop. |
| Irrevocable Contract | These agreements often can’t be reversed or accessed for emergencies. |
What Drives SPIA Payouts
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Payout amounts are calculated based on your age, gender, payout option, and prevailing interest or bond rates.
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Some SPIAs offer mortality credits, meaning pool payouts are structured so those who live longer benefit from those who don’t.
Why the SPIA Calculator Matters
My SPIA calculator empowers you to:
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Estimate monthly or annual income based on premium amount, age, and payout structure.
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Compare inflation options (none vs. fixed increases vs. CPI-adjusted) to see long-term purchasing power impacts.
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Evaluate legacy options like joint-life or period-certain payouts.
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Understand trade-offs—balance between upfront flexibility and long-term financial security.
Final Thoughts
SPIAs deliver immediate, reliable income, making them a powerful tool for retirees seeking security and simplicity. But limited liquidity and potential inflation erosion are real considerations. My SPIA calculator bridges knowledge gaps—helping you model your projections, compare options, and feel confident in whether a SPIA fits your retirement picture. For tailored guidance, consulting a financial fiduciary is also wise.