Best Annuity for a Widow Over 70 (2026)

TL;DR: When a spouse dies, Social Security drops to the higher of the two checks — the surviving spouse keeps only one. Pension survivor elections often pay 50%. Total household income can drop 30-50% overnight. A single-life SPIA on a portion of the IRA or non-qualified savings replaces the income gap. A MYGA on the rest preserves principal for late-life expenses or heirs. Don't rush; the first 12 months are the worst time to make major financial decisions.

Why your situation is different

You may be 70-85, grieving, dealing with estate paperwork, and looking at a mailbox full of bills. Financial decisions made in the first six months after a death are statistically worse than decisions made in months 7-18. Slow down.

Your income picture changed in two ways:

• Social Security: You now receive the larger of your own benefit or your deceased spouse's benefit — not both. If your husband collected $2,800/month and you collected $1,400, you now get $2,800 (and lose your $1,400). Net change: -$1,400/month or -$16,800/year.
• Pension survivor: If your spouse had a pension with a 50% joint-and-survivor election, you now get 50% of what was being paid. With 100% J&S, you get the full amount. With no survivor election, you get $0.

The drop is real, often $1,500-$4,000/month. The question is how to refill the gap.

Single-life SPIA: the gap-filler

A single-life SPIA pays a fixed monthly amount for the rest of your life and stops at your death. For a 75-year-old female, the payout rate in mid-2026 is roughly 8.5-9.0% of premium per year — meaning a $100K SPIA pays roughly $710-$750/month for life.

Why single-life over joint? You're widowed. No one to share the income with. Joint-life SPIAs make sense for couples; single-life pays more for the same premium when there's only one life on the contract.

Comparison: a 75-year-old female $200K SPIA pays ~$1,450/month for life. That's $17,400/year, lifetime, COLA-free unless you buy an inflation rider (which drops the starting payment ~35% in exchange for 2-3% annual increases).

Quick rate table: SPIA monthly payout per $100K, age 70-85, female single-life (mid-2026)

Rates move weekly. Get a quote on your specific contract date; the table above is for orientation only.

The MYGA bucket: principal preservation

SPIA dollars are gone once you fund the contract — you've exchanged them for the income stream. To keep principal accessible and heritable, keep a MYGA or savings bucket separate.

A 5 year MYGA at A-rated carrier in mid-2026 pays 5.55-5.85%. A $200K MYGA generates ~$11,400/year of interest (tax-deferred inside an IRA, tax-deferred until withdrawal outside one). Principal is preserved and passes to heirs (with the surrender period restriction).

The split between SPIA and MYGA depends on:

• How big the income gap is
• Your total assets (more assets = more MYGA, less SPIA)
• Your health and longevity expectation
• Whether you want to leave money to heirs

Top 3 SPIA carriers writing for widows in 2026

1. Mutual of Omaha (Income Annuity) — AM Best A+. Very strong claims history and competitive single-life rates.
2. MassMutual — AM Best A++. Highest possible rating; rates often near the top for older issue ages.
3. New York Life — AM Best A++. Mutual company, very stable, slightly lower rates traded off against the strongest carrier rating in the industry.

At 70+ issue age, the carrier rating matters more than at 55 issue age. You're buying an income stream that may pay for 20+ years. The carrier you choose at 75 needs to be there when you're 95.

Common mistakes widows make in the first 12 months

1. Buying a big SPIA on month 2. Wait. The first year, expenses spike (funeral, legal, household changes). You need flexibility, not lock-up.
2. Letting the deceased spouse's IRA sit without doing a spousal rollover. A spousal rollover lets you treat the inherited IRA as your own — better RMD treatment, ability to continue contributions if you have earned income.
3. Trusting the deceased spouse's advisor by default. The relationship was with your spouse. Get an independent second opinion before any major move.
4. Forgetting to claim the $255 SS lump-sum death benefit. Small, but it's yours.
5. Cashing out the deceased spouse's life insurance and putting it in checking. Life insurance proceeds are tax-free (income tax) but earn nothing in checking. Park them in an HYSA at minimum while you decide.

Worked example: 76-year-old widow, $450K assets + reduced SS + pension survivor

Eleanor, 76, husband Frank died at 79. Frank's SS: $2,950/month. Eleanor's SS: $1,250/month. Eleanor now gets $2,950 (loses her $1,250). Frank's pension: $42K/year with 50% J&S election, so Eleanor now gets $21K/year. Frank's life insurance: $100K. IRA balance (Eleanor's + spousal rollover of Frank's): $350K.

Before: $2,950 + $1,250 = $4,200/month SS, plus $42K pension = roughly $92,400/year household.

After: $2,950/month SS + $21K pension = roughly $56,400/year. Gap: ~$36,000/year.

Plan:

• Single-life SPIA, $150K from Eleanor's IRA, generates ~$1,065/month = $12,780/year
• 5 yr MYGA, $150K from IRA, 5.75% = ~$8,625/year of interest (compounding inside IRA)
• $50K life insurance to HYSA: emergency cushion, ~$2,250/year interest
• $50K life insurance to taxable brokerage: long-horizon growth for heirs
• $50K remaining IRA in index funds: inflation defense

Net annual income: $56,400 + $12,780 SPIA + $8,625 MYGA interest (if she chooses to withdraw it) = ~$77,800. Closes 60% of the gap; the rest can come from MYGA principal as needed, or lifestyle adjustment.

Related reading

• What happens to an annuity when the spouse dies?
• How much does a $100K annuity pay per month?
• How much does a $1 million annuity pay per month?
• What's the biggest disadvantage of an annuity?
• Non-qualified annuity tax explained

Frequently Asked Questions

How long after my spouse's death should I wait before buying an annuity?

Most planners suggest 6-12 months. Long enough that you've handled estate paperwork and have a clear picture of monthly income and expenses. Not so long that interest rate changes or carrier rate cuts erode your option.

Can I do a spousal rollover of my deceased spouse's IRA?

Yes. As surviving spouse, you can elect to treat the inherited IRA as your own. This gives you better RMD treatment and ability to continue contributions if you have earned income. Most banks/brokerages process this routinely; ask for the spousal rollover form.

Will the SPIA payment increase with inflation?

Only if you buy an inflation-rider SPIA, which starts at a lower monthly amount (typically 30-35% less) and increases each year. Most level-payout SPIAs do not increase.

Can I name a beneficiary on a single-life SPIA?

Single-life with cash refund: yes. Remaining unrefunded premium goes to beneficiary at your death. Pure single-life (no refund): no — payments stop at your death, nothing to beneficiary. Cash-refund version pays slightly less per month in exchange for the death benefit.

How is a SPIA from a traditional IRA taxed?

Each payment is fully taxable as ordinary income because the IRA was pre-tax. SPIA also satisfies the RMD for the SPIA portion of the IRA going forward.

What if I'm in poor health — should I still get a SPIA?

Probably not. SPIA payouts are based on average life expectancy; if you have a known shorter expectancy, you'll underperform the mortality math. Talk to a planner about alternatives like a MYGA with beneficiary or a deferred income annuity sized smaller.

Are widows' annuities exempt from estate tax?

No special exemption for annuities. The death benefit (if any) is included in your estate. For federal estate tax (2026 exemption ~$13.6M), most widows are below the threshold; some states have lower thresholds.

Can I use my late husband's IRA money to buy the SPIA?

Yes, via spousal rollover. Roll the inherited IRA into your own name, then use IRA dollars to fund the SPIA. The SPIA stays inside the IRA wrapper; payments are fully taxable as ordinary income.

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Disclosure

This article reflects publicly available product materials and approximate rates as of the date stated above. Annuity rates, caps, participation rates, payout factors, crediting methods, and tax rules change frequently. Always confirm current values against the most recent carrier disclosure document and the actual contract before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product, nor is it tax or legal advice. 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 and a CPA or tax attorney before purchasing any annuity or making rollover decisions. 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, payout factors, and tax treatment are subject to change. References to the TSP, FERS, CSRS, OPM, USPS, Social Security, IRMAA, WEP/GPO, IRC §72, §453, and §1035 reflect rules as of 2026 and are subject to change.