Editorial Policy & Methodology
This page documents exactly how every number on MyAnnuityCalc is produced, what assumptions we make, where our data comes from, and how we handle updates and corrections. Every calculator and payout table on the site uses this single methodology — there are no page-specific adjustments.
The formula
All monthly payout figures use the standard period-certain annuity payment formula (the same annuitization math documented in IRS Publication 939):
where r = annual rate ÷ 12, n = years × 12, P = principal
This models a fixed, period-certain payout: equal monthly payments that fully amortize the principal plus credited interest over the stated term. It does not model lifetime (mortality-pooled) annuities — insurer quotes for lifetime income depend on their actuarial tables and your personal details, and will differ from our period-certain figures.
Payout-term assumptions
Each purchase age is paired with a payout term targeting income into the late-80s, informed by SSA actuarial life tables:
| Purchase age | Assumed term | Income through age |
|---|---|---|
| 50 | 35 years | 85 |
| 55 | 30 years | 85 |
| 60 | 25 years | 85 |
| 62 | 23 years | 85 |
| 65 | 20 years | 85 |
| 67 | 18 years | 85 |
| 70 | 15 years | 85 |
| 75 | 12 years | 87 |
Rate assumptions
Tables show a credited-rate range of 4.0% to 6.0%, with 5.0% used as the baseline, reflecting the multi-year guaranteed annuity (MYGA) and fixed-annuity market as of our last update. Rates vary by carrier, term, and state; always compare live quotes.
Data sources
- IRS Publication 939 — general rule for pensions and annuities (taxation and annuitization math)
- Social Security Administration — actuarial life tables and average/maximum benefit figures
- Bureau of Labor Statistics — consumer expenditure survey data for retiree spending benchmarks
- CFPB — consumer guidance on retirement income choices
- State insurance departments and guaranty associations — state tax treatment and coverage limits on state pages
Update schedule
Rate assumptions and benchmark figures (Social Security averages, spending data) are reviewed and refreshed periodically; each page shows its last-updated date. If the fixed-annuity rate environment moves materially, we regenerate all payout tables from the updated assumptions.
Independence and advertising
MyAnnuityCalc is not an insurance agency and holds no insurance licenses. We do not sell annuities, generate sales leads, or accept compensation from insurers. The site is funded by advertising served through Google AdSense on some pages; advertisers have no influence over our methodology, numbers, or written content. We keep ads off supporting calculator pages and this documentation.
Corrections
When a verified error is reported (via the contact page), we correct it in the generator so the fix applies to every affected page, and we update the page's last-modified date. Material methodology changes are documented on this page.
A note on limitations
Our figures are educational estimates, not quotes or advice. Real annuity pricing incorporates gender, health, state regulations, rider costs, and the carrier's current rates. Treat our numbers as a starting point for understanding magnitude and trade-offs — then verify with licensed professionals and real quotes.