How Much Does a
$300,000 Annuity
Pay Per Month?

With annuity rates staying elevated in 2026, $300,000 generates more monthly income than at any point since 2008. But the final number depends heavily on three variables: your age at purchase, the payout structure you select, and current interest rates. A 70-year-old buying a life-only annuity can see $450 more per month than a 60-year-old with the same balance. Use our free annuity payout calculator to get your specific number based on your age and assumptions.

How Much Does a $300,000 Annuity Pay at Age 65?

At age 65, a $300,000 single-premium immediate annuity (SPIA) with a life-only payout structure pays $1,700–$1,950 per month based on current quotes from A-rated insurers in 2026. The spread between carriers reflects differences in underlying investment yields and competitive pricing. Choosing a joint-and-survivor option — which continues income to a spouse after your death — reduces the monthly amount to roughly $1,450–$1,550. A 20-year period-certain contract, which pays your beneficiaries if you die early, delivers approximately $1,980/month at this age.

What Variables Change Your $300,000 Annuity Payout?

Three factors move the payout number most: your age at purchase, current interest rates, and the payout type you select. Interest rates are especially significant. According to the Consumer Financial Protection Bureau (2023), a 1% increase in underlying rates raises annuity payouts by approximately 8–10%. In 2020, when 10-year Treasury yields averaged 0.89%, a $300,000 annuity for a 65-year-old yielded roughly $1,200–$1,350/month. Today's elevated rate environment means buyers lock in substantially higher income.

Adding a cost-of-living adjustment (COLA) rider cuts starting payments by 15–20% — roughly $260–$350 less per month — but payments increase each year to offset inflation. A 3% COLA on $300K typically reduces starting income to around $1,430–$1,490/month, reaching the unadjusted payment level after roughly 6–7 years of increases.

Life-Only vs. Period-Certain: Which Pays More on $300K?

Life-only annuities produce the highest monthly income because payments stop at death — the insurer retains any remaining unpaid principal. Period-certain contracts guarantee payments regardless of when you die: if you pass away in year 3 of a 20-year contract, payments continue to your named beneficiary through year 20. For a 65-year-old, the income difference is modest — life-only at roughly $1,750/month versus 20-year period certain at about $1,980/month, a gap of $230/month. If you live past age 82, life-only eventually catches up and pays more in cumulative terms.

The right choice depends on whether you have a spouse to protect and how much you value flexibility versus maximum income. See how age affects your specific payout scenarios on our $300,000 annuity payout at 65 breakdown.

The #1 Mistake When Comparing $300,000 Annuity Quotes

Most buyers compare monthly income figures without adjusting for payout guarantees and survivor benefits. Shopping only for the highest number leads retirees toward single-life, no-refund contracts — which can leave a spouse with zero income if the annuitant dies early. A $300,000 joint-and-survivor annuity at age 65 pays roughly $260/month less than a life-only contract, but the coverage difference is significant: one structure protects a surviving spouse for decades, the other does not.

Always compare quotes using identical payout structures, the same term length, and the same insurer rating tier (A or better). Rate shopping across different payout types inflates apparent differences and makes it impossible to evaluate true value. Most financial planners also recommend getting quotes from at least three carriers, since rates can vary by 50–80 basis points for identical products from different A-rated insurers.