Worried about living beyond 90? Longevity annuities offer high guaranteed income starting at age 85 or later. Explore fresh examples and strategic uses.
Longevity Annuity: Retirement Income That Starts When Others Stop
Most retirement income plans focus on the first 20 years of retirement. But what if you live past 85 or even 95? A Longevity Annuity—also called a Deferred Income Annuity (DIA)—helps you prepare for that.
Unlike SPIAs that start income immediately, longevity annuities delay income until much later, offering far higher monthly payouts in exchange for your patience.
---🧓 New Example: Start at 85 with $75,000 at Age 70
Client Profile: 70-year-old woman, good health, wants guaranteed income starting at age 85.
- 💸 Investment: $75,000 single premium at age 70
- 🗓️ Deferral: 15 years (income starts at 85)
- 📈 Payout: $2,900/month for life, starting at 85
That’s over $34,800/year in guaranteed lifetime income—a 46% payout rate by age 85, which far exceeds traditional annuity payouts.
---📊 Comparison: Start at 85 vs. 88
| Start Age | Annual Income | Lifetime Benefit Break-Even |
|---|---|---|
| 85 | $34,800 | Age 87.2 |
| 88 | $42,600 | Age 89.8 |
Insight: The later you defer, the higher the monthly income. But the break-even age also moves out—choose based on health and longevity expectations.
---✅ Why Longevity Annuities Work
- 🛡️ Covers your “late-retirement gap” if you live long
- 💰 Extremely high payout due to long deferral
- 🧠 Encourages smarter early-retirement spending—since you know future income is locked in
❓ Who Should Consider a Longevity Annuity?
- 🔹 Age 60–75, in good health
- 🔹 Have other income (Social Security, pensions, 401k) until age 85
- 🔹 Want to avoid relying on kids or Medicaid later in life
🆚 Should You Just Buy a MYGA or SPIA Later?
Some people prefer to:
- Buy a MYGA at age 70 → grow the money for 15 years
- Convert to a SPIA at age 85 → start income then
Problem: You may not get a better rate later, and you may not be insurable. Longevity annuities lock in high future income now, regardless of future rates or health.
---Final Thoughts
- 📌 Longevity Annuities don’t replace your core retirement plan—they enhance it.
- 📌 Think of it as a pension that starts at 85—just when most plans run out.
- 📌 Perfect for those who want to enjoy early retirement without fear of “what if I live too long?”
👇 Want to compare quotes for different start ages? Click below for a personalized payout report.
