Best Annuities for Lifetime Income (2026)
TL;DR: If income is your primary goal, SPIAs from A-rated mutuals win. Mortality credits make them mathematically superior to any other income product. The top 3 entries on this list are all SPIAs. FIA+GLWB structures occupy positions #6-12 with IQS scores in the 72-86 range — they make sense for buyers wanting deferred activation with future income certainty, but they sacrifice 10-15 IQS points vs SPIA for the optionality.
How we rank: the Income Quality Score
The Income Quality Score (IQS) is a 1-100 framework we built to compare what a contract actually delivers in lifetime income across seven dimensions: lifetime-income guarantee, payout per dollar at ages 65/70/75, joint-life pricing, COLA option, rollup quality (for deferred products), carrier financial strength, and income flexibility. We explain the full rubric in Income Quality Score (IQS) — Annuity Rankings.
This page is the 12-product ranking that comes out of running the IQS across the 2026 universe.
The hero table: top 12 by IQS
Monthly income figures are mid-2026 quotes for a 65-year-old male non-qualified, single-life, on $100,000 of premium. Joint-life figures and other-age figures available on request. Payout factors change weekly; confirm at quote.
| # | Product | IQS | Mo. Income / $100K @ 65 SL | One-line why |
|---|---|---|---|---|
| 1 | NY Life Guaranteed Lifetime Income SPIA | 95 | ~$655/mo | A++ mutual; best joint-life pricing; cleanest disclosure. |
| 2 | MassMutual RetireEase SPIA | 94 | ~$660/mo | A++ mutual; top-3 single-life; participating contract pays dividends. |
| 3 | Penn Mutual SPIA | 92 | ~$650/mo | A+ mutual; aggressive payouts for older issue ages. |
| 4 | Athene SPIA | 90 | ~$680/mo | A+; often the highest single-life payout in any given month. |
| 5 | Pacific Life Pacific Income Generator (DIA) | 88 | ~$1,180/mo @ 75 (deferred 10yr) | Deferred Income leader; mortality credits compound during deferral. |
| 6 | Allianz 222 FIA + PIV | 86 | ~$590/mo (immediate) / ~$890 @ 75 | 52% PIV bonus on income base; the FIA+GLWB structure where the rider math works. |
| 7 | Nationwide Peak 10 + Bonus Income+ | 84 | ~$580 (immediate) / ~$840 @ 75 | 8% annual rollup on benefit base for up to 10 years. |
| 8 | Athene Agility 10 (FIA + GLWB) | 82 | ~$575 (immediate) / ~$815 @ 75 | Top FIA income rider for the 7-10 year deferred buyer. |
| 9 | Lincoln OptiBlend with i4LIFE | 80 | ~$555 (immediate) / variable | Variable income option lets payouts rise with index credits. |
| 10 | F&G Power Accumulator + GLWB | 78 | ~$560 (immediate) / ~$800 @ 75 | A-rated; competitive rollup + payout combination. |
| 11 | North American Future Income 8 | 75 | ~$555 (immediate) / ~$795 @ 73 | Accessible income rider; A+ carrier; 8% rollup. |
| 12 | EquiTrust MarketPower with Income Rider | 72 | ~$575 (immediate) | B++ carrier; best-in-tier income rider for the rate-shoppers tolerant of mid-tier rating. |
The top 12, in detail
#1 NY Life Guaranteed Lifetime Income SPIA — IQS 95
The IQS top spot has belonged to NY Life for most of the last decade. At single-life issue, Athene typically pays slightly more per month, but NY Life wins on three things that matter more in aggregate: joint-life pricing (typically 10-12% reduction vs single-life for J&S 100%, where most carriers price 18-22%), carrier rating (A++ across all four major agencies; one of only two carriers in the universe at this tier), and contract simplicity (the policy reads cleanly; the payout factor doesn't change based on which broker channel sells it).
Payouts (mid-2026, $100K NQ, life-only): 65M ~$655/mo · 70M ~$715/mo · 75M ~$795/mo · 65F ~$615/mo · 70F ~$675/mo · 75F ~$750/mo. Joint 65M/63F (J&S 100%) ~$540/mo. The dollar gap to position 4 (Athene) at single life is real but small; the joint-life gap to most competitors is larger and underweighted by buyers focused on the single-life headline.
For couples buying a SPIA as the foundation of retirement income, NY Life is the default recommendation.
#2 MassMutual RetireEase SPIA — IQS 94
MassMutual RetireEase is the only A++ SPIA on the market that's a participating contract — meaning the policy pays dividends in years when actuarial experience beats assumption. Dividends are not guaranteed but have been paid annually for over a century. For SPIAs purchased with annual non-guaranteed dividend income on top of the base contractual payout, RetireEase is structurally unique.
Payouts (mid-2026, $100K NQ, life-only): 65M ~$660/mo · 70M ~$720/mo · 75M ~$800/mo. Roughly equivalent to NY Life on single-life base pricing. Joint-life pricing is slightly less generous than NY Life.
For the buyer who values the dividend option and the A++ rating, MassMutual is interchangeable with NY Life at the top. Pick based on which underwriter is faster (varies month to month) or which broker has the appointment.
#3 Penn Mutual SPIA — IQS 92
Penn Mutual is the underrated mutual. A+ rating (one notch below NY Life and MassMutual), competitive pricing across most ages, and aggressively priced for older issue ages (75+). At issue 80, Penn Mutual often beats the A++ carriers on single-life payout by 3-5%. For widows and late-life buyers, Penn Mutual gets onto every short list we build.
Payouts (mid-2026, $100K NQ, life-only): 65M ~$650 · 75M ~$795 · 80M ~$910. The 80-year-old monthly payout of $910/mo per $100K is roughly 11% annualized payout factor — competitive with carriers that have less name recognition.
Less broker-channel volume than NY Life/MassMutual; sometimes harder to access without a producer who's appointed. For the right buyer, the IQS 92 score is real.
#4 Athene SPIA — IQS 90
Athene plays for market share. Their SPIA pricing is consistently 2-5% higher on single-life monthly payout than the A++ mutuals — they want the income volume and they're willing to give up some margin to get it. The A+ rating is a notch below NY Life/MassMutual; Athene compensates with the highest single-life payouts in any given month.
Payouts (mid-2026, $100K NQ, life-only): 65M ~$680 · 70M ~$745 · 75M ~$825. Joint-life pricing less generous than NY Life — Athene's joint reduction is typically 18-20% vs NY Life's 10-12%. For single-life buyers, Athene often wins on raw monthly dollars; for couples, NY Life usually wins on the joint math.
The IQS weighs joint pricing at 15%, which is why Athene comes in at #4 despite higher single-life payouts than positions #1-3. For the single-life buyer maximizing monthly dollars, Athene moves up to #1 in your personal ranking.
#5 Pacific Life Pacific Income Generator (DIA) — IQS 88
The cleanest DIA on the market. The Pacific Income Generator lets you fund today and start income at a designated future date — 5 to 30 years out. Because mortality credits compound during the deferral period (fewer 60-year-olds will be alive at 75 than there are 60-year-olds today), the eventual payout dwarfs what a same-age SPIA would deliver from the accumulated dollars.
Example: a 60-year-old male funds $100K today with income starting at 75. Monthly income at activation ~$1,180/mo (life-only). That's a 14.2% payout factor on the original premium — no accumulation product comes close. The premium is irrevocable once deferred income begins.
QLAC-qualified for use inside an IRA (subject to the $200K-per-person limit in 2026). For the 60-year-old with $1M+ in IRA who wants to defer RMDs on $200K and lock in late-life income simultaneously, the QLAC version of this DIA is one of very few legal vehicles to accomplish both.
#6 Allianz 222 FIA + PIV — IQS 86
The highest-IQS FIA+GLWB structure. Allianz 222's Protected Income Value rider applies a 52% bonus to the benefit base at activation — meaning a $100K premium creates a benefit base near $152K immediately, and the income calculation runs against that base. The rider charge is 1.05% annually applied to the benefit base, real but tolerable given the bonus.
For the 60-year-old who wants to fund today and activate income at 70-72, Allianz 222 delivers comparable income to what a DIA bought today at activation age would pay, with the additional benefit of cash-value liquidity (the cash value is still accessible if circumstances change). The trade-off: lower payout per dollar than a pure SPIA at the same age.
See our full Allianz 222 FIA Review for the PIV math, rider charges, and activation rules.
#7 Nationwide Peak 10 + Bonus Income+ — IQS 84
Nationwide's Bonus Income+ rider grows the benefit base at 8% per year for up to 10 years (or until activation, whichever comes first). The payout factor at age 65 is roughly 5.0%; at age 75, 5.5%; at age 80, 6.0%. The rollup compounds the benefit base aggressively during the deferral years.
Example: a 60-year-old funds $100K, defers 10 years. Benefit base at 70 = $100K × (1.08)^10 ≈ $216K. Payout at 70 = $216K × 5.25% = ~$11,340/yr = $945/mo lifetime. Cash value during deferral grows or stays flat based on index credits.
For the 7-10 year deferred buyer who values the option to change their mind, Nationwide is the cleanest 8%-rollup FIA on the market. A+ carrier and strong renewal-rate integrity earn the high IQS.
#8 Athene Agility 10 (FIA + GLWB) — IQS 82
Athene's Agility 10 GLWB rider is one of the best-priced FIA income riders for the 7-10 year deferral horizon. Rider charge is 1.0% annually; rollup is 7% for the first 10 contract years. Payout factors are slightly more generous than industry average at activation ages 65-75.
For Athene FIA buyers who want the income rider on the Performance Elite chassis or the Ascent Pro chassis, Agility 10 is the rider to add. The cash value of the underlying FIA grows with S&P-linked credits subject to a competitive cap (~8.5% in 2026).
#9 Lincoln OptiBlend with i4LIFE — IQS 80
i4LIFE is Lincoln's variable-income option that lets the activated lifetime income rise with index credits. Most FIA+GLWB structures pay a level income for life (good for predictability, bad for inflation protection). i4LIFE pays a base income plus a participation in subsequent index credits — meaning the income can grow over time in strong index years.
For the buyer who values inflation defense and is willing to accept some payment variability in exchange for the upside, i4LIFE is the most sophisticated income structure in the FIA universe. Setup is more complex than a standard GLWB; we typically recommend an independent producer review before signing.
#10 F&G Power Accumulator + GLWB — IQS 78
F&G's Power Accumulator FIA with the GLWB income rider is competitive across both accumulation (top-tier caps) and income (7-8% rollup, 5.5-6% payout at age 70). A-rated carrier (one notch below A+); rider charges are reasonable.
For the buyer who wants both accumulation upside and income optionality in a single contract, Power Accumulator is the most balanced product on the list at this rating tier.
#11 North American Future Income 8 — IQS 75
North American (Sammons Financial) Future Income 8 is the accessible 8%-rollup FIA. Rider charge is 1.05% annually; A+ carrier strength; broad broker availability. For the buyer who can't access Nationwide Peak 10 or Allianz 222 through their producer, North American is the strong third option.
#12 EquiTrust MarketPower with Income Rider — IQS 72
EquiTrust MarketPower is the highest-IQS B++ FIA on the market. The B++ rating disqualifies it from the A-rated tier, but the income rider math is competitive with A-rated products — sometimes 5-8% higher monthly income at activation. For the buyer comfortable with mid-tier carrier strength (and staying within state guaranty fund coverage), EquiTrust is the value play.
We don't recommend EquiTrust for buyers with placements above the guaranty fund cap (typically $250-$300K per carrier per state). For smaller placements where the dollar gap matters and the rating is acceptable, EquiTrust earns its IQS 72.
Why SPIAs beat FIA+GLWB for income
The honest answer: mortality credits. A SPIA from an A++ mutual at age 65 captures the full mortality credit pool from day one. An FIA+GLWB defers activation; during the deferral years, no mortality credits are captured on the buyer's behalf because the carrier hasn't pooled them yet — the rollup grows the benefit base from carrier hedging margins and rider charges, not from pooled-life redistribution.
When the FIA+GLWB activates at age 75, the carrier converts the benefit base to lifetime income using a payout factor designed to make the income sustainable. That payout factor typically runs 5.0-6.5% at age 75. A direct SPIA at age 75 from the same A-rated carrier typically delivers 7.5-9.5% — the difference is the pooled mortality credit.
The math: $100K to FIA+GLWB at age 65, 8% rollup, activate at 75 = ~$215K benefit base × 5.5% = ~$11,825/yr. $100K direct SPIA at age 75 (after 10 years of safe yield, ~$163K accumulated) × ~9.0% = ~$14,670/yr. The SPIA delivers ~24% more income per dollar even with weaker accumulation, because mortality credits do work that rollup percentages cannot.
When FIA+GLWB actually makes sense
Three scenarios where the structure earns its IQS 75-86 score despite the SPIA gap:
- You want option-value during the deferral years — You think you'll need income at 75, but you're not 100% sure. If your situation changes (early death, large windfall, change of plans), you can keep the cash value. A SPIA is irrevocable from the moment of activation.
- You want a death benefit during the deferral years — If you die during deferral, the FIA cash value (sometimes enhanced) passes to heirs. A SPIA pays only the remaining unpaid certain period (if any); life-only SPIAs pay zero.
- You want index-linked accumulation during deferral — In strong index years, the FIA cash value can grow, sometimes enough to push the activation income above what the rollup-only path would have produced. The 0% floor protects against negative years.
For buyers who don't need any of those three, the SPIA at activation age (waiting 7-10 years in a MYGA or treasury ladder, then buying the SPIA) usually delivers more lifetime income per dollar than the FIA+GLWB.
The 4% rule replacement, annuity-style
The classic 4% safe withdrawal rule says a retiree with a balanced portfolio can withdraw 4% of starting principal annually, adjusted for inflation, with high probability of not depleting savings over 30 years. The 4% rule fails in market crashes early in retirement (sequence-of-returns risk) and forces aggressive equity allocation late in life when the buyer often wants stability.
A 65-year-old male buying a NY Life SPIA on $1M receives $6,550/month = $78,600/year = 7.86% of premium, guaranteed for life. That's nearly double the 4% rule, with zero portfolio risk and zero sequence-of-returns risk. The trade-off: principal is gone, COLA is optional (and reduces starting payment 30-38%), and the income stops at death (life-only) or continues at reduced level to spouse (joint-life).
For income that exceeds expenses, the surplus can be saved or invested elsewhere. For income that exactly matches expenses, the SPIA replaces the 4% rule entirely. For income that exceeds the spending plan, the surplus funds a long-term-care reserve or a legacy bucket. We have a full walkthrough at 4% Rule Annuity Replacement.
Related reading
- Income Quality Score (IQS) — Full Framework
- Growth Potential Score (GPS) — Ranking Annuities for Accumulation
- Death Benefit Quality Score (DBQS) — Ranking Annuities for Legacy
- Best Annuities for Growth Potential (2026)
- Best Annuities for Highest Death Benefit (2026)
- 4% Rule Annuity Replacement
- How much does a $100K annuity pay monthly?
- Allianz 222 FIA Review (PIV income explained)
- Best Annuity for a Widow Over 70
Frequently Asked Questions
Why do SPIAs from mutuals beat SPIAs from stock companies on the IQS?
Mutuals (NY Life, MassMutual, Penn Mutual) are owned by policyholders, not shareholders, which structurally aligns long-term promise reliability with the buyer's interest. Stock companies (Athene, Pacific Life) often price more aggressively on single-life payouts but have shareholder margin requirements that shape how they manage joint-life pricing and adverse experience. The IQS rewards both, with a 10% weight on carrier strength that favors A++ ratings.
How much income can I get from a $250K SPIA at age 70?
Roughly $1,750-$1,900/month single-life male, or $1,540-$1,690/month single-life female. Joint-life (70M/68F, J&S 100%) approximately $1,460-$1,580/month. Quotes vary weekly; the figures above are mid-2026 estimates.
Should I add a COLA rider to my SPIA?
COLA riders reduce starting income by 30-38% in exchange for 2-3% annual increases. Mathematically, the COLA rider breaks even around year 18-22; if you live longer than that, the COLA wins. If you live shorter, the level payment wins. For 70-year-olds with average longevity, the level payment usually wins on total dollars; for 60-year-olds with strong family history, the COLA often makes sense.
Can I get a SPIA with a death benefit?
Yes. The "cash refund" SPIA (position #12 on our death benefit list) guarantees the beneficiary receives the remaining unpaid premium at death. The "period certain" SPIA continues payments to beneficiary for the remainder of the certain period. Both reduce the monthly payment by 3-7% vs life-only.
Is the income from a SPIA taxable?
Non-qualified SPIA: each payment is part return-of-premium (tax-free) and part interest (taxable as ordinary income). The "exclusion ratio" is determined at issue and stays constant for the exclusion period. Qualified (IRA) SPIA: every payment is fully taxable as ordinary income. Roth IRA SPIA: every payment is tax-free (if the Roth is qualified per IRS rules).
Why don't VAs with GLWB make this list?
Two reasons. First, fee load — 1.0-1.5% M&E plus 1.0-1.5% rider charge eats 2-3% of payouts annually. Second, the VA's market exposure isn't reliably accretive to the income calculation (most VA+GLWB contracts protect the benefit base from market downside via "lock-in" mechanics that effectively make the income calculation similar to an FIA+GLWB). Net of fees, the A-rated FIA+GLWB usually delivers more income per dollar than the comparable VA+GLWB.
Can I get income from a MYGA?
Technically yes (via systematic interest withdrawal), but it's a poor income solution. A $100K MYGA at 5.85% generates ~$487/month of interest, vs $655/month from a 65-year-old male SPIA. The MYGA preserves principal; the SPIA spends it. For income-focused goals, the SPIA delivers more per dollar.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article reflects publicly available product materials and approximate payout factors as of the date stated above. Annuity payout factors, rollup percentages, rider charges, and joint-life pricing change frequently — typically weekly. Always confirm current values against the most recent carrier disclosure document and the actual contract before purchasing. The Income Quality Score (IQS) is a proprietary scoring framework developed by Hans Goldstein for informational and comparative purposes; it is not endorsed by, affiliated with, or licensed from any carrier or rating agency. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity and long-term care insurance market; specific appointment status with any carrier discussed may vary, and discussion of a carrier is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier in connection with the publication of this article. Always read the actual contract and consult a licensed advisor before purchasing any annuity product. Annuities are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §72, §401(a)(9), and Qualifying Longevity Annuity Contracts reflects law as of 2026 and is subject to change.