Sample Retirement Income & Annuity Comparison

Prepared 9/16/2026 · AnnuityMath

Educational planning report. Estimates are hypothetical, not insurer quotes, guarantees, tax advice or a suitability determination.

Your summary

Your financial inputs

Fixed and variable scenarios use the same premium as alternatives. Do not add their income together.

Fixed income illustrations

Annual interest assumption: 4%. Inflation assumption: 2.5%. Term payments amortize principal with monthly payments in arrears. The lifetime proxy amortizes through age 95, minimum 10 years, using the younger spouse for joint coverage. It is not actuarial pricing.

Fixed products to research

Variable investment withdrawal scenarios

Estimated account values after 35 years, after modeled fees and withdrawals. These are hypothetical scenarios, not predictions. Planned withdrawal: $833 per month. No income guarantee is modeled.

Total annual fee assumption: 1.5%. Withdrawal assumption: 4% of starting premium each year. Monthly growth, equivalent monthly fees, then withdrawals are applied. Withdrawals stop at depletion. Constant-return scenarios omit market sequencing, taxes, surrender costs and benefit-base rider pricing. Actual losses may be worse.

Variable products to research

Research candidates, not suitability recommendations.

Product information reviewed September 14, 2026 from the linked provider/distributor pages. No live quotes, personalized eligibility checks, or product-specific illustrations are connected.

What if you allocate more—or less?

Compare the same assumptions with different allocations. These mechanical comparisons are not recommended allocations. Money outside an annuity is not necessarily cash or immediately accessible.

Fixed income allocation comparison

Uses your 4% interest assumption and 32-year amortization horizon. A lifetime proxy is not an insurer lifetime quote.

Variable planned withdrawal comparison

Uses 4% of starting premium each year. Planned withdrawals are not guaranteed income and may stop when the account depletes.

Retirement stress tests

These are hypothetical illustrations, not forecasts or probabilities. They isolate specific risks; actual outcomes may be worse. Existing income, taxes and expenses are not projected.

What inflation could do to purchasing power

Illustrated starting payment: $1,155 per month. The table discounts a level payment into income-start-year dollars, using your 2.5% inflation assumption and a higher 4.5% assumption. It does not assume an inflation rider.

Purchasing-power values only apply while payments continue. Term payments stop after the selected term; variable withdrawals depend on remaining account value. These figures do not extend the payment period.

The inflation table uses the fixed proxy. Fixed and variable comparisons are alternatives, not combined income.

What if retirement lasts longer?

Spreading the same $250,000 over 37 years instead of 32 years reduces the mathematical payment from $1,155 to $1,080 per month at the same interest assumption. This is a planning sensitivity, not a change to a contracted lifetime payment or a prediction of lifespan.

Variable annuity: losses early in retirement

Compare a constant 4% gross return with -20% in year one, -10% in year two, then 4% annually. These paths have different total returns; this is not an equal-return sequence comparison. Both use 1.5% annual fees and $833 planned monthly withdrawals over 35 years. Growth and fees are applied monthly before withdrawals. No rider guarantee, taxes or surrender charges are modeled.

Bring these comparisons to your advisor. Ask how actual quotes, contract guarantees, fees, funding-source taxes and accessible savings would change the picture.

Questions to ask your advisor

1. How do the lower, selected and higher allocation illustrations compare with actual insurer quotes and my liquidity needs?
2. How would higher inflation or a longer retirement change my plan?
3. What contractual income would I receive for this exact premium, start date and payout option?
4. What are all charges, commissions, investment expenses and optional benefit costs?
5. What are the insurer’s current financial strength ratings, and what supports its guarantees?
6. How would the funding source affect taxes and rollover eligibility?
7. Will 100% of the selected income continue to my surviving spouse, and how will our pension and Social Security income change?
8. How could early market losses change the sustainability of my withdrawals?
9. Which fees use the account value and which use a separate benefit base?
10. What withdrawal limits and investment restrictions apply to the income rider, and what happens if the account reaches zero?

Before-you-buy checklist

• ☐ Confirm my estimated assets, income and expenses against current statements.
• ☐ Keep pension lump-sum and monthly-pension alternatives separate.
• ☐ Set aside accessible savings for emergencies and upcoming expenses.
• ☐ Obtain comparable written insurer quotes using identical assumptions.
• ☐ Review the contract or prospectus, including fees and withdrawal restrictions.
• ☐ Confirm state, age, account, survivor and income-start eligibility.
• ☐ Understand inflation, beneficiary provisions and what happens at death.
• ☐ Review tax and rollover consequences with an appropriate professional.
• ☐ Check the advisor’s licensing and ask how they are compensated.
• ☐ Confirm cancellation/free-look terms before signing or paying a premium.

Important limitations

No asset growth before the income start date is assumed. Income is before tax. Lifetime proxies do not guarantee payment for life. Insurer guarantees depend on claims-paying ability and contract conditions. Product eligibility and current terms require verification. This report uses one snapshot of your inputs; it does not update automatically.