How Much Does a $1 Million Annuity Pay Per Month?
TL;DR: A $1M immediate annuity (SPIA) pays roughly $5,900-$6,400/month for a 65-year-old male, single-life. At 70: $6,700-$7,200. A $1M MYGA at 5.75% pays $4,792/month interest-only and preserves principal. At $1M deposits, carriers often add premium bonuses of 25-50 basis points that lift effective rates slightly. Split across 3-4 carriers to stay under state guaranty fund caps. Full tables below.
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.
SPIA single-life monthly payout per $1M, 2026
| Age | Male | Female |
|---|---|---|
| 60 | $5,400-$5,900 | $5,100-$5,600 |
| 62 | $5,600-$6,100 | $5,300-$5,800 |
| 65 | $5,900-$6,400 | $5,600-$6,100 |
| 67 | $6,100-$6,600 | $5,800-$6,300 |
| 70 | $6,700-$7,200 | $6,400-$6,900 |
| 72 | $7,000-$7,500 | $6,700-$7,200 |
| 75 | $7,600-$8,200 | $7,100-$7,700 |
| 78 | $8,300-$8,900 | $7,800-$8,400 |
| 80 | $8,800-$9,500 | $8,300-$9,000 |
SPIA single-life with cash refund (per $1M)
| Age | Male (cash refund) | Female (cash refund) |
|---|---|---|
| 65 | $5,550-$6,050 | $5,300-$5,800 |
| 70 | $6,200-$6,700 | $5,950-$6,450 |
| 75 | $7,000-$7,600 | $6,650-$7,200 |
| 80 | $7,950-$8,650 | $7,600-$8,250 |
SPIA single-life with 10-year period certain (per $1M)
| Age | Male (10 yr certain) | Female (10 yr certain) |
|---|---|---|
| 65 | $5,750-$6,250 | $5,550-$6,000 |
| 70 | $6,400-$6,900 | $6,200-$6,650 |
| 75 | $7,150-$7,700 | $6,850-$7,350 |
SPIA single-life with 20-year period certain (per $1M)
Longer period-certain options are popular at HNW levels because the residual goes to heirs if you die early. Payouts drop further.
| Age | Male (20 yr certain) | Female (20 yr certain) |
|---|---|---|
| 65 | $5,450-$5,900 | $5,350-$5,800 |
| 70 | $5,900-$6,350 | $5,800-$6,250 |
| 75 | $6,250-$6,700 | $6,150-$6,600 |
SPIA joint-life 100% survivor (per $1M)
| Joint ages | Joint 100% survivor |
|---|---|
| 60 / 58 | $4,650-$5,100 |
| 65 / 63 | $5,100-$5,550 |
| 70 / 68 | $5,700-$6,150 |
| 75 / 73 | $6,500-$7,000 |
| 80 / 78 | $7,450-$8,000 |
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SPIA joint-life 50% survivor (per $1M)
| Joint ages | Both alive | Survivor only |
|---|---|---|
| 65 / 63 | $5,450-$5,950 | $2,725-$2,975 |
| 70 / 68 | $6,150-$6,700 | $3,075-$3,350 |
| 75 / 73 | $7,000-$7,600 | $3,500-$3,800 |
DIA deferred to age 80, purchased at age 65 (per $1M)
| Purchase age / start age | Male monthly payout | Female monthly payout |
|---|---|---|
| 65 → 80 | $17,500-$19,500 | $16,200-$18,000 |
| 65 → 85 | $26,500-$29,500 | $24,000-$27,000 |
| 60 → 80 | $21,500-$24,000 | $19,800-$22,000 |
MYGA interest-only on $1M deposit, 2026
At $1M deposit, carriers often offer rates 15-30 basis points above the standard shelf rate due to volume tiers. Top of the shelf in mid-2026 is around 6.00-6.15% for 7-10 year MYGAs.
| Term | Top-of-shelf rate (A-rated) | Monthly interest on $1M | Annual interest |
|---|---|---|---|
| 3 years | 5.40-5.60% | $4,500-$4,667 | $54,000-$56,000 |
| 5 years | 5.50-6.05% | $4,833-$5,000 | $58,000-$60,000 |
| 7 years | 5.90-6.15% | $4,917-$5,125 | $59,000-$61,500 |
| 10 years | 5.95-6.20% | $4,958-$5,167 | $59,500-$62,000 |
State guaranty fund: critical at $1M
State insurance guaranty funds cover annuity contracts up to a limit per owner per carrier. The limit is typically $250K to $300K for present value of annuity benefits, $100K-$300K for cash value, depending on state.
A $1M SPIA at one carrier is well over the typical guaranty cap. If you want full guaranty coverage, split across 3-5 carriers:
- $300K at Carrier A
- $300K at Carrier B
- $300K at Carrier C
- $100K at Carrier D
Or: accept that at $1M, the AM Best A+ rating is your primary defense and the guaranty fund is a secondary backstop. Most HNW SPIA buyers do a mix: large positions at A+ carriers, smaller positions at A carriers for diversification.
HNW-specific considerations
1. Premium bonuses
At $250K+, many carriers offer 1-3% premium bonuses (added to your account value at issue). These come with their own recapture schedule and don't always increase the SPIA payout (recapture-on-surrender, not yield enhancement).
2. RIA-distributed annuities
Some carriers offer "advisory" or "no-commission" annuity products distributed through RIAs. These have lower internal costs but require a fee-based RIA relationship. Useful at HNW where the RIA fee is already being paid.
3. Private placement variable annuities (PPVA)
For HNW investors ($1M+ minimum, accredited only), PPVA structures wrap hedge fund allocations in tax-deferred insurance contracts. Very specialized; only relevant if you have substantial alternative investment exposure.
4. Estate tax planning
Annuity death benefits are included in the gross estate (no step-up like other assets). At $1M of annuity value, this can matter for estate planning. ILITs (irrevocable life insurance trusts) and other structures are often paired with HNW annuity ownership.
When to lock vs wait at $1M
At HNW scale, phasing is almost always right:
- Don't lock $1M in a single SPIA on a single day. Phase in over 4-8 months.
- Diversify across 3-5 carriers as you go.
- If rate environment is rising, stretch the phasing further.
- If rate environment is falling, accelerate the phasing.
Top 5 SPIA carriers for $1M deposits in 2026
- MassMutual: AM Best A++. Mutual company, top of the shelf for older issue ages.
- New York Life: AM Best A++. Slightly lower rates, highest carrier rating.
- Mutual of Omaha: AM Best A+. Strong middle-aged issue payouts.
- Lincoln Financial: AM Best A+. Competitive across age ranges.
- Pacific Life: AM Best A+. Strong joint-life and period-certain payouts.
Related reading
- How much does a $100K annuity pay per month?
- Best annuity for small business owner exit ($1M-$10M)
- Best annuity for dentists selling practice
- Non-qualified annuity tax explained
- What's the biggest disadvantage of an annuity?
Frequently Asked Questions
Will I get a better rate buying $1M from one carrier or splitting?
Same per-dollar rate at top carriers; carriers don't penalize you for splitting. The split is purely about state guaranty fund coverage.
Should I buy a single $1M SPIA or several smaller ones?
Almost always several smaller ones, for: (a) guaranty fund coverage, (b) diversification of carrier risk, (c) ability to time-diversify rate locks across months.
Are HNW annuity buyers entitled to negotiated rates?
No. Annuity rates are set by carrier; there's no negotiation. Premium bonuses and rate tiers are pre-published. The 'negotiation' is in product selection. An independent producer compares shelves and picks the carrier with the highest rate that week.
Can I gift annuity payments to family during life?
Yes, but the income remains taxable to the annuitant. Gifting the underlying contract is more complex and triggers acceleration of basis in many cases. Consult tax counsel.
What's the annuity-equivalent of a Direct Indexing brokerage account?
Closest analog is a Private Placement Variable Annuity (PPVA) wrapping a custom portfolio. Available only to accredited investors at $1M+ minimums.
Is annuity income subject to NIIT?
The taxable portion of non-qualified annuity income can be subject to the 3.8% Net Investment Income Tax if your MAGI exceeds the threshold. IRA-funded annuity income is not subject to NIIT (it's ordinary retirement income).
Should I worry about Apollo / Athene / private-equity-owned carriers at $1M?
Reasonable question. PE-owned carriers have grown rapidly and use different investment strategies than legacy mutuals. AM Best ratings reflect this in some cases. For HNW positions, splitting between mutual (NYL, MassMutual) and PE-backed (Athene) is a common diversification.
Can I do a 1035 exchange of a $1M annuity?
Yes, including partial 1035 exchanges. Useful for moving from a high-fee VA into a low-fee MYGA or no-rider FIA. The cost basis carries over.
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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. Confirm current figures in the latest carrier disclosure and the contract before you buy. 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.