Best SPIA Rates: How Carriers Compare
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Payout snapshot June 2026 · page reviewed 2026-10-03
Short answer
Which company pays the most on an immediate annuity (SPIA)?
It changes with interest rates, so no single company stays on top. For the same buyer, payouts across carriers differed by about 8% to 12% in the June 2026 snapshot on this page, and the order shifts as rates move. Rates change often. Get an email when they do.
The carrier figures below are a June 2026 snapshot kept for context, not today’s quotes. Get same-day quotes before you buy.
Quick take: SPIA payouts vary by 8-12% across carriers. In the June 2026 snapshot, EquiTrust paid the most at a B++ rating and Athene led the A+ carriers. That order is not a current quote. For A++ ultimate safety, NY Life and MassMutual cost ~8% in income but deliver the highest possible carrier rating. Below: full ranked comparison + when each wins.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
How carriers compared in June 2026 (65M life-only, $100K premium)
June 2026 snapshot, kept for context. Not today’s quotes; the order changes as rates move.
| Rank | Carrier | AM Best | Monthly | Annual Income | Why |
|---|---|---|---|---|---|
| #1 | EquiTrust | B++ | $605 | $7,260 | Top payout, B++ rating |
| #2 | Athene | A+ | $590 | $7,080 | Best A+ rating + payout |
| #3 | Penn Mutual Premier Income | A+ | $560 | $6,720 | A+ mutual carrier |
| 4 | Mutual of Omaha Income Annuity | A+ | $555 | $6,660 | A+ mutual, conservative |
| 5 | MassMutual RetireEase | A++ | $540 | $6,480 | A++ highest rating |
| 6 | New York Life GLI | A++ | $535 | $6,420 | A++ highest rating |
| 7 | Securian Minnesota Life | A+ | $540 | $6,480 | A+ mutual |
| 8 | Thrivent Financial | A++ | $530 | $6,360 | A++ Christian mutual |
Same age, female 65F: payouts are LOWER (June 2026 snapshot)
Women have longer life expectancy → smaller monthly payments per $100K.
| Carrier | 65F Monthly | 65F Annual |
|---|---|---|
| EquiTrust | $565 | $6,780 |
| Athene | $552 | $6,624 |
| Penn Mutual | $525 | $6,300 |
| Mutual of Omaha | $520 | $6,240 |
| MassMutual | $507 | $6,084 |
About 6-8% less monthly income for 65F vs 65M due to longer life expectancy.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
Age curves: older buyers get more
The mortality credit math means SPIA payouts increase materially with age:
| Age | Monthly (Athene, June 2026 snapshot) | Annual |
|---|---|---|
| 60M | $510 | $6,120 |
| 65M | $590 | $7,080 |
| 70M | $700 | $8,400 |
| 75M | $850 | $10,200 |
| 80M | $1,050 | $12,600 |
| 85M | $1,300 | $15,600 |
A 75-year-old buyer gets 45% more lifetime income per dollar than a 65-year-old. The math heavily favors older buyers.
When to pick each carrier
Pick EquiTrust if:
- Maximum income is your goal
- You're comfortable with B++ rating
- Premium is under $250K (state guaranty fund coverage)
Pick Athene if:
- A+ rating is your minimum
- You want institutional Apollo backing
- Customer service complaints don't deter you
Pick Penn Mutual, Mutual of Omaha if:
- A+ mutual structure preferred
- Conservative + reliable distribution
Pick MassMutual, NY Life, Thrivent if:
- Absolute carrier safety is non-negotiable
- A++ rating is your minimum
- Willing to pay ~8% in income for the rating upgrade
SPIA variants: choose your structure
Life-only
- Maximum monthly income
- Payments stop at death (heirs get nothing)
- Best for single, no-heirs, max income
Cash refund
- ~7-10% lower income than life-only
- Heirs get unrecovered principal at death
- Best for "what if I die early" concern
Period certain (5/10/15/20 yr)
- Lower income than life-only
- Guarantees minimum payments to heirs
- Useful for SS bridge or fixed-period need
Joint life (couples)
- 100%, 75%, or 50% to surviving spouse
- ~10-15% lower starting income vs single life
- Protects spouse income
COLA (cost of living adjustment)
- Starting income ~25% LOWER than fixed
- Annual increases for inflation
- Best for buyers fearing inflation
How to actually buy
Step 1: Decide structure
- Married or single?
- Heirs concern?
- Inflation fear?
- Income start age?
Step 2: Get 3 quotes
Different carriers price differently. Independent producer pulls all 3.
Step 3: Verify carrier rating
AM Best, S&P, Moody's. Stay above your threshold.
Step 4: §1035 source (if funding from existing annuity)
Tax-free transfer from old contract to SPIA.
Step 5: Sign + transfer
Typically 4-6 weeks from application to first payment.
SPIA versus alternatives
SPIA vs GLWB rider FIA
- SPIA: higher payout, no heirs benefit, irrevocable
- GLWB: lower payout, account value to heirs, flexible
SPIA vs MYGA → SPIA conversion
- Direct SPIA: lock in now at current age
- MYGA first, SPIA later: principal preserved + higher age payout
See Income Rider Fee vs Payout Math.
SPIA vs CGA (Charitable Gift Annuity)
- SPIA: maximum income, no charitable deduction
- CGA: ~15% lower income, charitable deduction, legacy
See Charitable Gift Annuity Explained.
What to do
213-414-2808 for a SPIA quote comparison across 5+ carriers (life-only, cash refund, joint life, period certain). Hans pulls all quotes + shows the math + recommends based on your specific situation. No charge.
Related reading
- SPIA Pros and Cons Honest
- Best Annuity for 65-Year-Old
- Best Annuity for 70-Year-Old
- Best Annuity for 75-Year-Old
- Annuity vs Pension
SPIA payouts listed are a June 2026 snapshot, not current quotes. Actual quotes vary by state, exact age, and prevailing interest rates. Always confirm current quotes before purchase.
How a SPIA works, in plain terms
A SPIA (Single Premium Immediate Annuity) is the simplest annuity product in the market. You hand the carrier a single lump sum. The carrier promises to send you a check every month for the rest of your life. That's it. No caps, no riders, no surrender charges, no growth potential.
The math:
You give the carrier $200,000
The carrier promises you ~$1,300/month for life
You die at 75 (life-only): the carrier keeps the unused money (mortality pooling)
You die at 95 (life-only): the carrier has paid you $312,000, far more than you put in
You die at 105: even more
The SPIA is mortality pooling at scale. Some buyers die early, some late. The carrier balances out the risk and pays everyone a consistent monthly amount.
Payout options change the math:
• Life only = max monthly income, heirs get nothing if you die early
• Life + 10-year period certain = ~5% less monthly, but heirs guaranteed minimum 10 years of payments
• Life + cash refund = ~10% less monthly, but heirs get the unpaid principal as a refund
• Joint life = ~18% less monthly, but spouse continues to receive after first death
The only "fee" is built into the payout calculation. There's no separate annual fee like an FIA or variable annuity. What you see is what you get.
Quick SPIA FAQ
Q: Can I get my principal back if I change my mind?
A: No. SPIA is irrevocable. Once you sign, your principal becomes the carrier's; you receive only the promised income stream.
Q: What happens if the carrier goes bankrupt?
A: State guaranty fund covers typically $250,000-$300,000 per owner per carrier. Always check your state's limit.
Q: Is SPIA income taxable?
A: Non-qualified SPIA: each payment is split into excluded portion (return of principal, not taxable) and included portion (interest, taxable). Qualified SPIA (in IRA): 100% of each payment is taxable as ordinary income.
Q: Can I add inflation protection?
A: Yes, via the Cost-of-Living (COL) rider. Starting payment is ~25% lower in exchange for annual increases. Most SPIA buyers skip it to maximize starting income.
Q: What age should I buy a SPIA?
A: 65-85 typically. Younger than 65 = mortality pooling math is weaker. Older than 85 = limited horizon to collect.
Q: How does SPIA compare to bond ladder?
A: SPIA pays more lifetime income per dollar because of mortality pooling. Bond ladders can't replicate this. But SPIA eliminates principal access; bond ladders don't.
Q: Can I do a partial SPIA?
A: Yes. Put part of your nest egg into a SPIA for an income floor, and keep the rest for growth and liquidity. Most planners recommend partial SPIA, not 100%.
Q: Should I get joint life with my spouse?
A: If you both need the income and want it to continue after the first death, yes. Costs ~18% lower monthly payment. If your spouse has their own pension or SS that's adequate, life-only with a smaller secondary policy may make more sense.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
SPIAs are irrevocable. Once you sign, your principal is gone. Before you commit, how does this insurer's payout compare with other quotes for your age? Are you choosing the right payout option (life only vs. cash refund vs. joint)? Payouts for the same deposit can differ between insurers, so compare quotes before you sign.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
We’ll email it to you. Hans replies within one business day. Privacy Policy.
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies 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 §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.