Annuity guide
Best Annuity for a 60 Year Old
At age 60, you're in a prime position to purchase an annuity that can maximize your retirement income. With 5-10 years until typical retirement age, a deferred income annuity can significantly grow your future income base. Here are the top annuity options for 60-year-olds based on income potential, safety, and flexibility.
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Top annuity companies compared
Ranked by overall score across income options, financial strength, fees, flexibility, and customer service.
Score
94/100
Monthly Income*
$1,520
Score
90/100
Monthly Income*
$1,450
Score
89/100
Monthly Income*
$1,490
Score
88/100
Monthly Income*
$1,400
Score
87/100
Monthly Income*
$1,460
Score
86/100
Monthly Income*
$1,480
Investors comfortable with RILA buffered crediting and multiple segment-type selection
Score
84/100
Monthly Income*
$1,410
Income-focused retirees seeking aggressive rollup growth and lifetime guarantees
Score
84/100
Monthly Income*
$1,520
Score
83/100
Monthly Income*
$1,320
Conservative savers prioritizing principal protection and carrier strength
Score
82/100
Monthly Income*
$1,430
Score
82/100
Monthly Income*
$1,530
Accumulators seeking long-term growth with principal protection and broad index options
Score
82/100
Monthly Income*
$1,425
Score
82/100
Monthly Income*
$1,320
Score
82/100
Monthly Income*
$1,400
Savers prioritizing principal protection with indexed crediting flexibility
Score
82/100
Monthly Income*
$1,400
Score
82/100
Monthly Income*
$1,485
Investors comfortable with RILA structure seeking income with market-linked growth opportunity
Score
81/100
Monthly Income*
$1,450
Investors seeking competitive guaranteed rates from a modern, tech-forward carrier
Score
80/100
Monthly Income*
$1,430
Score
72/100
Monthly Income*
$1,125
Older or younger buyers (ages 0-89) who cannot qualify with carriers having tighter age limits
Score
68/100
Monthly Income*
$700
*Monthly income based on $250,000 investment at age 65 with guaranteed lifetime payments.
Income projections by investment amount
Estimated guaranteed lifetime income from top-rated annuities at age 65.
| Company | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| Athene Annuity | $545/mo | $1,520/mo | $3,040/mo | $6,830/mo |
| American Equity | $520/mo | $1,450/mo | $2,900/mo | $6,500/mo |
| Allianz Life | $535/mo | $1,490/mo | $2,980/mo | $6,750/mo |
| Mutual of Omaha | $510/mo | $1,400/mo | $2,800/mo | $6,350/mo |
| Nationwide | $525/mo | $1,460/mo | $2,920/mo | $6,600/mo |
| Jackson National | $530/mo | $1,480/mo | $2,960/mo | $6,700/mo |
| Equitable | $505/mo | $1,410/mo | $2,820/mo | $6,380/mo |
| Protective Life | $535/mo | $1,520/mo | $3,040/mo | $6,900/mo |
| Prudential | $480/mo | $1,320/mo | $2,640/mo | $6,100/mo |
| American National | $515/mo | $1,430/mo | $2,860/mo | $6,380/mo |
| Delaware Life | $530/mo | $1,530/mo | $3,060/mo | $7,100/mo |
| North American | $515/mo | $1,425/mo | $2,850/mo | $6,450/mo |
| Pacific Life | $480/mo | $1,320/mo | $2,640/mo | $6,300/mo |
| Principal | $500/mo | $1,400/mo | $2,800/mo | $6,200/mo |
| Security Benefit | $510/mo | $1,400/mo | $2,800/mo | $6,200/mo |
| Symetra | $536/mo | $1,485/mo | $2,970/mo | $6,720/mo |
| Transamerica | $525/mo | $1,450/mo | $2,900/mo | $6,500/mo |
| Aspida | $510/mo | $1,430/mo | $2,860/mo | $6,540/mo |
| American Century | $450/mo | $1,125/mo | $2,250/mo | $4,750/mo |
| American Gulf | $280/mo | $700/mo | $1,400/mo | $2,800/mo |
Income figures are estimates based on current rates at age 65 with lifetime guarantee. Actual payouts may vary.
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Why age 60 is the sweet spot for annuity purchases
At 60, you have a unique advantage: enough time to defer for 5–7 years (maximizing rollup rates) while being close enough to retirement that income projections are highly accurate. According to LIMRA, the average age of annuity purchasers is 62, making age 60 slightly ahead of the curve — and ahead of the competition for the best rates.
What is a Deferred Income Annuity?
A deferred income annuity is a contract where you invest a lump sum today and begin receiving guaranteed income payments at a future date. The longer you defer, the higher your eventual payouts — making it ideal for 60-year-olds planning to retire at 65–67.
Income projections at age 60 (5-year deferral)
These projections assume a purchase at age 60 with income starting at age 65:
| Investment | Monthly Income | Annual Income | Lifetime Total* |
|---|---|---|---|
| $100,000 | $817 | $9,802 | $215,644 |
| $250,000 | $2,042 | $24,506 | $539,132 |
| $500,000 | $4,084 | $49,011 | $1,078,242 |
| $1,000,000 | $8,169 | $98,022 | $2,156,484 |
*Lifetime total assumes life expectancy of 87. Actual payments continue for life regardless of longevity.
Key takeaway
A 60-year-old investing $250,000 in a top-rated fixed indexed annuity with a 5-year deferral can expect approximately $2,042/month in guaranteed lifetime income starting at age 65. The best companies for this profile are Athene and Allianz, which offer rollup rates up to 8.05%.
Best annuity strategies at age 60
- Laddering strategy: Split your investment across 2–3 annuities with different deferral periods to create staggered income streams starting at ages 62, 65, and 67.
- Fixed indexed with income rider: Choose a product with a 7–8% rollup rate and defer for 5 years. This maximizes the income base before you activate withdrawals.
- MYGA + FIA combo: Place a portion in a 5-year MYGA at 5.50% for guaranteed growth, and the remainder in an FIA for income potential.
Social Security coordination
At 60, you're 2 years from the earliest Social Security eligibility (62) and 7 years from full retirement age (67). An annuity can bridge the income gap if you retire before claiming Social Security, or supplement your benefits if you delay claiming to maximize your monthly check.
Frequently asked questions
Common questions about the best annuity for a 60 year old.
What is the best age to buy an annuity?
The ideal age to purchase an annuity depends on your goals. For deferred income annuities, buying between ages 50-60 allows time for the income base to grow before you need income. For immediate income, ages 65-75 typically offer the best payout rates. MYGAs can be purchased at any age for guaranteed returns. Generally, annuities make the most sense for people within 10-15 years of retirement or already retired who want guaranteed income.
What happens to my annuity when I die?
What happens depends on the type of annuity and the options you selected. Most deferred annuities include a death benefit that pays your beneficiary at least the account value or total premiums paid (whichever is greater). With income annuities, you can choose options like period certain (payments continue to beneficiaries for a set period), joint life (payments continue to a surviving spouse), or life only (payments stop at death). Choosing the right beneficiary options is an important part of annuity planning.
How do I choose the best annuity for my situation?
Choosing the best annuity involves evaluating several factors: your investment timeline (when you need income), risk tolerance (fixed vs. variable), financial goals (income, growth, or legacy), the insurance company's financial strength ratings, fees and surrender charges, income rider payout rates, and your state's guaranty association coverage. We recommend comparing at least 3-5 products from top-rated companies and consulting with a fiduciary financial advisor.
What is a lifetime income rider?
A lifetime income rider is an optional benefit you can add to a deferred annuity that guarantees you a stream of income for life, regardless of how long you live or how your account performs. The rider typically has a rollup rate that grows your income base during the deferral period, and a payout rate based on your age when you begin taking income. Rider fees typically range from 0.75% to 1.25% annually.
What is a fixed indexed annuity (FIA)?
A fixed indexed annuity is a type of annuity that earns interest based on the performance of a market index, such as the S&P 500, without directly investing in the market. Your principal is protected from market losses — you can never lose money due to market downturns. When the index performs well, you earn interest up to a cap or participation rate. When the index declines, your account value stays the same. FIAs are popular for their combination of growth potential and downside protection.
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