Annuity Calculator

Investing your savings can feel challenging, but when it comes to building wealth for retirement, annuities often stand out as a smart choice. By contributing either a lump sum or regular payments, an annuity is designed to steadily grow your funds over time, helping secure your financial future.

Use our retirement annuity calculator below to gain confidence in your choice and see the estimated amount you can accumulate.

Fill out all the necessary fields in the annuity payout calculator below and see the projected payments you will receive for retirement.

An annuity is a financial product that pays out a lump sum or a series of payments in exchange for money the annuity was purchased with. It’s often a popular investment opportunity for future retirees who wish to grow their savings, as an annuity contract typically lasts from 5 to 10 or even more years.

Among all the types of annuities, it may be daunting to choose which one will suit your goals the best. Hence, life annuity calculators are created to show an estimated growth of your money based on the data you input.

Annuities can be divided into three main types, offering unique features and potential returns:

• Fixed: Fixed annuities are considered safe due to their guaranteed interest rate. For those seeking stability in their investments, fixed annuities provide steady growth.
• Variable: A variable annuity lets you invest in selected market options, with your returns tied to their performance. While it offers greater growth potential compared to a fixed annuity, it also comes with a higher risk.
• Indexed: An indexed annuity ties your returns to the performance of a selected market index, offering a mix of fixed and variable features. Indexed annuities could be a balanced option of risk and reward.

Besides, you can also choose an annuity depending on when it pays out:

• Deferred: With a deferred annuity, you will receive your payouts over a period of time, usually after 5, 10, or more years, depending on the contract.
• Immediate: With an immediate annuity, you will claim your payout soon after investing a lump sum.

Annuities are a preferred investment option for retirees for many reasons, including:

✅ Guaranteed stream of income: When the payout is initiated at the right time, you will receive a reliable income either as a lump sum of money or a series of payments.
✅ Considered one of the safe investments: If investing is not your strong suit, an annuity could be a good option for you because your insurance company will manage the annuity for you.
✅ Available in many types: Annuity products are versatile, offering various features like death benefits, tax-deferred growth, lifetime income, and more.

As with any investment, even with annuities, there are certain risks you should consider before contributing your money:

❗Long-term investment: Typically, an annuity contract is signed for a long time, and you may incur extra fees and charges if you decide to withdraw your money before a defined period.
❗May be difficult to understand: Annuity products are complex, require a good understanding, and even a better company to guide you through the rights and benefits, including those types in fine print.
❗Market risks (for variable and indexed annuities): Some annuities are linked to a market and depend on its performance, which may lead to great rewards but also potential losses.

Aren’t sure annuity is the right choice for you?