If you’re shopping for an annuity, one of the first questions you probably have is: What’s the highest-paying annuity available right now?
The answer isn’t as simple as naming one company. The highest-paying annuity depends on several factors, including your age, whether you’re single or married, when you want to start income, and what type of annuity you’re looking for. With interest rates still relatively high, however, today’s annuity payouts are among the most attractive we’ve seen in years.
Let’s look at what drives the highest payouts and how to find the right option for your retirement.
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 my annuity calculator
Higher Interest Rates Mean Higher Annuity Payouts
One of the biggest reasons annuity payouts are so attractive right now is because interest rates remain elevated.
Insurance companies can earn more on their investments, which allows them to offer larger guaranteed lifetime income payments and more competitive fixed growth rates than they could when rates were much lower.
If you’re considering locking in guaranteed retirement income, today’s rate environment is worth paying attention to.
👉 Want to see what the highest-paying annuity looks like for your situation? Schedule a call and I’ll walk you through your options.
The Highest Lifetime Income Depends on Your Situation
There isn’t one annuity that’s best for everyone.
For example, someone who is married will generally receive a lower lifetime payout than someone who is single because the income is guaranteed over two lifetimes instead of one. Likewise, delaying income for several years can significantly increase your future monthly payments.
Your payout can also vary based on:
- Your age
- Your state of residence
- Whether you’re single or married
- When you begin taking income
- The insurance company you choose
That’s why I always recommend comparing multiple carriers instead of assuming one company always has the best offer.
💡 Pro Tip: Even small differences between insurance companies can translate into thousands of dollars in additional guaranteed income over retirement.
👉 Want me to compare the highest-paying annuities for you? Schedule a call.
Income Riders vs. SPIAs
If your primary goal is lifetime income, you’ll typically be comparing two common options.
Income Rider Annuities
Income riders allow you to receive guaranteed lifetime income while still maintaining access to your contract’s cash value, subject to the terms of the policy. Many retirees appreciate having that added flexibility.
Single Premium Immediate Annuities (SPIAs)
A SPIA works differently. Once you purchase it, the contract is fully annuitized. In exchange, you receive guaranteed income for life, but you generally give up access to the principal. Depending on your goals, you may also choose certain payout guarantees, such as continuing payments for a minimum number of years if both spouses pass away early.
Neither option is automatically better. It simply depends on your retirement objectives.
Looking for Safe Growth? Consider a MYGA
Not everyone needs lifetime income immediately.
If your goal is simply earning a guaranteed fixed return for a set number of years, a Multi-Year Guaranteed Annuity (MYGA) may be worth considering.
Think of a MYGA as similar to a bank CD, but issued by an insurance company.
Benefits include:
- Guaranteed fixed interest rate
- No annual management fees
- Terms ranging from approximately 2 to 10 years
- Predictable growth without market risk
Some MYGAs also allow limited annual withdrawals after the first year, while others require leaving the money untouched until the contract matures.
One important consideration is that while MYGAs can offer attractive guaranteed rates today, if interest rates are much lower when the contract ends, future lifetime income options may also be lower. That’s something to think about if your long-term goal is guaranteed retirement income rather than short-term growth.
👉 If you’re deciding between a MYGA and an income annuity, schedule a call and I’ll help you compare both.
Don’t Forget About Fixed Indexed Annuities
Another option is a Fixed Indexed Annuity (FIA).
Rather than earning a fixed interest rate like a MYGA, FIAs earn interest based on the performance of selected market indexes while protecting you from market losses, subject to the contract’s terms.
Because index strategies, participation rates, caps, and crediting methods vary between companies, there isn’t a single “highest-paying” FIA. However, over longer time periods, the right fixed indexed annuity may outperform a MYGA depending on market performance and the specific contract.
That’s why it’s important to compare products carefully instead of focusing on one advertised rate.
Why Comparing Multiple Companies Matters
The highest-paying annuity today may not be the highest-paying annuity tomorrow.
Rates change as interest rates change, and different insurance companies update their products at different times. Submitting an application can also lock in a current rate before future reductions take effect, depending on the carrier’s rules.
Rather than relying on advertisements or one company’s quote, I recommend comparing multiple highly rated insurers based on your specific goals.
Conclusion
The highest-paying annuity isn’t simply the one with the biggest advertised number. The best choice depends on whether you’re looking for guaranteed lifetime income, fixed growth, or long-term indexed growth, along with your age, retirement timeline, and overall financial plan.
If you’re ready to compare today’s highest-paying annuities, I’d be happy to help. I believe you should understand your options first (not feel pressured into buying anything). Schedule a call, and together we’ll compare the available choices so you can decide what makes the most sense for your retirement.
Need help with finding the best annuity for your retirement?
Click here to schedule a call with me.
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