Factors That Determine Annuity Income

6 Factors That Detemine Annuity Income

These 6 factors affect the amount of income generated by an annuity.

1. Interest Rate

The interest rates at the date of deposit or the rates established previously with a rate guarantee.

2. Mortality

The life expectancy of the annuitant(s).

3. Annuity Type and Options

The choice of annuity type, (e.g. Single Life) and options (e.g. Indexing, Return of Premium, etc.) will affect the amount of income.

4. Guarantee Period

The longer the Guarantee Period, the lower the income amount.

5. Premium Amount

The larger the premium the greater the income payment.

6. Income Deferral

The period of time between the Purchase Date and the Income Start Date.