How to Calculate Annuity Income
What a lump sum buys as guaranteed income, and how it compares with drawing down yourself.
How this number is built
Calculating it yourself
Step 1
Get quotes from several providers on the same day; payout rates vary meaningfully.
Step 2
Decide whether a guarantee period or joint life is needed, and price what it costs.
Step 3
Compare level against inflation-linked income across your realistic lifespan, not just year one.
Step 4
Consider annuitising only part of the portfolio and keeping the rest flexible.
What people ask next
Can I change my mind later?
Usually not. Immediate annuities are generally irrevocable, which is why the decision deserves several quotes.
What happens if I die early?
With a single life annuity, payments stop. A guarantee period or joint life option protects against that at the cost of lower income.
Searches this page answers
| Related search | Goes to |
|---|---|
| annuity calculator | Annuity Income Calculator |
| how much income will my annuity pay | Annuity Income Calculator |
| immediate annuity rates | Annuity Income Calculator |
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