How Long Do Annuity Payments Last — And When Should You Buy?
Annuity duration is a choice you make at purchase. You can opt for a fixed term (10, 20, 30 years) or lifetime income. Timing your purchase correctly can significantly increase your monthly payment.
How Long Will Annuity Payments Last?
The duration of annuity payments depends entirely on the type you choose at purchase:
Fixed-term annuity
10, 15, 20, or 30 yearsPayments guaranteed for the chosen period. If you die before it ends, remaining payments go to your beneficiary.
Life annuity (single life)
Until you die (no minimum)Maximum monthly income, but payments stop at death. Risk: if you die early, the insurer keeps the remainder.
Joint and survivor annuity
Until both you and your spouse diePayments continue at 50–100% to a surviving spouse. Lower monthly payment than single-life.
Life with period certain
Lifetime, minimum guaranteed termExample: 'Life with 10-year certain' pays for life, but guarantees at least 10 years even if you die early.
Monthly payment comparison: $250,000 at 5% by payout type
| Payout Type | Monthly Payment |
|---|---|
| 10-year term | $2,651.64 |
| 15-year term | $1,976.98 |
| 20-year term | $1,649.89 |
| 25-year term | $1,461.48 |
| 30-year term | $1,342.05 |
When Should I Buy an Annuity? What Is the Best Age?
There's no single "best" age — it depends on annuity type. But the general principle is: the older you are at purchase, the higher your monthly payment for a given investment, because the insurer expects to pay out for fewer years.
Monthly income from $250,000 immediate annuity by purchase age (20-year term, 5%)
| Purchase Age | Monthly Payment | Payments End At |
|---|---|---|
| 55 | $1,649.89 | 75 |
| 60 | $1,649.89 | 80 |
| 62 | $1,649.89 | 82 |
| 65(common) | $1,649.89 | 85 |
| 67 | $1,649.89 | 87 |
| 70 | $1,649.89 | 90 |
| 75 | $1,649.89 | 95 |
For a fixed-term annuity, monthly payment is the same regardless of age — only the end date shifts. For lifetime annuities, older buyers get higher monthly payments.
Best age by annuity type:
Deferred annuity (accumulation)
40s–50sMaximize tax-deferred growth before retirement. More years = larger future payout.
Immediate / SPIA
65–70Payment rate is highest when life expectancy is shorter. Waiting too long means fewer total payments.
Longevity annuity (QLAC)
55–65Buy now, income starts at 80+. Lock in lower cost while young; protects against outliving assets.
Fixed indexed annuity
50s–early 60sBenefit from growth phase, then convert to income at retirement. 10-year surrender period considered.
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Key Takeaways
You choose the duration at purchase: fixed term (10–30 years) or lifetime income.
'Life with period certain' is the most popular option — lifetime income with a minimum guarantee.
For immediate annuities, buying at 65–70 maximizes your monthly payment rate.
For deferred annuities, starting in your 40s–50s gives the most tax-deferred growth time.
Shorter payout terms mean higher monthly payments from the same principal.