Worked example: US fixed immediate annuity
A 65-year-old purchasing a $150,000 level lifetime SPIA with a 6.8% benchmark rate and a 10-year period certain receives $9,894 per year ($825 per month) guaranteed for life, with a minimum guaranteed cumulative payout of $98,940.
Inputs for the us annuity calculator
01
Premium & Benchmark Rate
Enter the lump-sum premium amount and current market SPIA payout rate.
02
Period Certain & Survivor
Select period certain guarantees (5 or 10 years) and joint life continuation percentages.
CALCULATOR QUESTIONS
US annuity calculator questions
What is the exclusion ratio for non-qualified annuities?
Under IRS rules, each payment from a non-qualified annuity represents part non-taxable return of your principal and part taxable earnings until the principal is recovered.
Are US annuities protected if the insurer fails?
State guaranty associations protect policyholders up to statutory limits (typically $250,000 to $500,000 in annuity benefits per insurer).