How Much Annuity Income Can You Buy with $100,000?

As you plan for your retirement, figuring out how you'll get the income you need, be sure to at least look into and consider annuities. Social Security benefits may be great, but they're not huge -- the average monthly retirement benefit, as of April, was just $2,081, or about $25,000 annually.

Withdrawals and dividends from investment accounts are also great, but the stock market will swoon every now and then, and some stocks simply lose ground over time instead of gaining it -- potentially also canceling dividend payments along the way.

Meet annuities

The beauty of annuity income is that it's guaranteed -- as long as the company you bought your annuity from remains in business. (So buy only from highly rated companies.)

An annuity is essentially a contract between you and an insurance company or bank, which promises to deliver regular income to you (or, possibly, a future lump sum amount) in exchange for your paying them a significant chunk of change. (They also tend to feature fees -- be sure to do your homework before committing any dollars.)

There are several kinds of annuities, such as fixed, variable, and indexed. We generally favor fixed annuities, as they spell out what you can expect and are the least complex of the bunch.

How much annuity income can you buy with $100,000?

Much will depend on the annuity company, the prevailing interest rates, and the terms you choose (for example, opting for 10 years of payments or payments for the rest of your life, and starting payments soon or in a few years).

But just to give you an idea of what you might expect, the table below shows what you might get for $100,000 or $200,000 with a fixed annuity that starts immediately.

Data source: ImmediateAnnuities.com. Data as of June 12, 2026.

You'll see that women will get quoted lower payouts -- because they tend to live longer.

You can also see that you might set up some meaningful income via annuities. That, perhaps in addition to Social Security income, withdrawals from retirement accounts, dividends, and interest payments, might amount to sufficient cash flows to keep you afloat throughout your later years. Having multiple income streams in retirement is always a good idea, and here's one way that could look:

Alternatives to annuities

Annuities are not a no-brainer investment, though. They can serve many people very well, but they do have some downsides, such as your losing control of the money you put into them. Depending on your finances and your preferences, you might do fine without them -- perhaps by building a substantial stream of dividend income.

Still, give annuities some consideration as part of your retirement plan.