Best Annuity Rates in California

Monthly Returns for a $100,000 Annuity in California

The monthly payout from a $100,000 annuity varies depending on the annuity type, the age of the annuitant, and the payout period selected. In California, for a 65-year-old retiree purchasing a single life immediate annuity, the expected monthly income can range between $500 to $600. This amount may change with optional features like a 10-year period certain, inflation protection, or joint annuity coverage with a spouse.

Here’s a breakdown of common scenarios:

• Single Life with No Period Certain: ~$550/month

• Joint Life with 10-Year Guarantee: ~$475/month

• With 2% COLA (Cost of Living Adjustment): Starts at ~$440/month, increases annually

  
  

These are ballpark figures and can shift based on interest rates, insurer competition, and policy structure.

Current Top-Paying Annuity Options

Some of the highest paying annuities currently available in California include fixed indexed annuities and multi-year guaranteed annuities (MYGAs). These are offered by companies such as:

• Athene

• MassMutual

• Fidelity & Guaranty Life

• Allianz Life

• American Equity

  
  

For example, fixed indexed annuities can offer annual caps up to 10% based on index performance, while MYGAs provide guaranteed fixed returns over a set number of years—some exceeding 5.50% for shorter terms.

These higher returns typically come with trade-offs such as limited liquidity, surrender charges, or complexity in interest calculation. That’s why it's important to review the contract specifics with a licensed advisor.

What $500,000 Annuity Pays Per Month in Retirement

For a $500,000 annuity, the monthly income dramatically increases, especially when locked into a lifetime immediate annuity. Here's what Californians can expect:

• Single Life (Age 65): ~$2,700/month

• Joint Life with 10-Year Guarantee: ~$2,300/month

• With Inflation Protection: ~$2,100/month initially

  
  

For those closer to 70 or older, the monthly income can rise significantly, sometimes reaching $3,000+ for single life annuities due to shorter expected payout periods.

Monthly Income on a $1,000,000 Annuity in California

When investing $1,000,000 into an annuity, the monthly payout can provide a comfortable retirement cushion. For Californians, the breakdown may look like:

• Single Life Immediate Annuity (Age 65): ~$5,400 to $6,000/month

• Joint Life with 10-Year Period Certain: ~$4,600 to $5,000/month

• With COLA Rider: ~$4,200/month to start, increasing annually

  
  

These amounts offer stable, predictable income and can be structured for long-term needs, legacy planning, or to supplement other retirement income like Social Security or pensions.

California-Based Annuity Estimation Tools

A California-specific annuity calculator is useful for determining accurate quotes that include local tax implications and insurer availability. These tools typically allow you to:

• Choose your investment amount

• Select age and retirement date

• Pick between single or joint life

• Add inflation protection or guaranteed periods

  
  

Many leading financial advisory firms and annuity brokers based in California provide custom calculators that reflect both state regulations and top provider rates.

Examples include calculators offered by:

• Fidelity

• Blueprint Income

• Charles Schwab

• Independent local advisors registered in California

  
  

Best Options for Seniors Buying Annuities in California

Seniors in California aged 60+ typically look for guaranteed income and low-risk options. The best annuities for this group are:

• Single Premium Immediate Annuities (SPIAs)

• Deferred Income Annuities (DIAs)

• MYGAs (Multi-Year Guaranteed Annuities)

  
  

Insurance providers catering well to California seniors include:

• New York Life

• MassMutual

• Lincoln Financial

  
  

MYGAs are especially attractive because they offer guaranteed returns with no market exposure, often with terms of 3 to 10 years, and fixed rates around 5.0% to 5.5%.

Top Fixed Annuities Over a 5-Year Term

The best 5-year fixed annuity rates in California as of early 2025 are averaging around 5.3% to 5.6% annually. These are offered by companies like:

• Aspida Life Insurance

• Nassau

• Oceanview Life & Annuity

• Delaware Life

  
  

A 5-year MYGA with a 5.5% interest rate on $100,000 would yield around $27,500 in interest, compounded annually. These products are ideal for conservative investors looking for stability and better returns than CDs or savings accounts.

Long-Term Options: 30-Year Annuity Rates

A 30-year annuity is often structured as a deferred annuity or used as a payout strategy, not just a savings vehicle. Rates tend to range from 4.25% to 5.25%, depending on features and payout guarantees.

These annuities suit those looking for:

• Long-term income

• Death benefits for heirs

• Inflation-protected growth (if added)

  
  

California residents might benefit from combining a 30-year annuity with a laddering strategy that includes 5-, 10-, and 20-year options for improved liquidity and flexibility.

Fixed Rate Annuities Over 10 Years

The best 10-year fixed annuity rates are currently in the 4.8% to 5.4% range. Over 10 years, compounding interest adds up significantly, making it a reliable medium-term solution for those nearing retirement.

These annuities offer:

• Guaranteed annual interest

• Principal protection

• Optional death benefit riders

  
  

Ideal insurers offering solid 10-year fixed annuities in California include:

• Protective Life

• American National

• Oceanview Life

  
  

Medium-Term 20-Year Annuity Income Projections

A 20-year annuity, often structured as a period-certain immediate annuity, provides a set monthly payout for two decades. A $100,000 purchase can yield approximately $550 to $600/month, guaranteed for 240 months.

For those seeking a longer, structured withdrawal plan, these annuities remove uncertainty from market fluctuations and protect capital over the long haul. They’re a popular choice for retirees looking to supplement Social Security with a fixed, predictable income.

California’s Best 2-Year Fixed Annuity Returns

Though shorter than most traditional annuity terms, 2-year fixed annuities can still offer competitive returns, especially in today’s high-interest environment. The best options in California now sit around 4.6% to 4.8% annually.

While they don’t offer long-term compounding benefits, they:

• Provide security of principal

• Can outperform high-yield savings accounts

• Allow flexibility after a short term ends

  
  

These are a great fit for Californians who want to park their money safely while staying open to reinvesting when interest rates potentially rise even further.

3-Year Fixed Annuity Products With High Yields

3-year fixed annuities currently offer some of the most attractive rates for short-term savers, with top insurers advertising returns up to 5.4%. These are a strong alternative to bank CDs and can be found through:

• Sentinel Security Life

• Canvas Annuity

• Delaware Life

  
  

A $100,000 investment at 5.4% would earn approximately $17,000 in interest over three years. These short-term products allow for greater reinvestment opportunities in a changing market.

FINAL THOUGHTS

For residents of California, choosing the right annuity product involves balancing guaranteed income with long-term financial goals. From short 2-year MYGAs to robust lifetime annuities that generate monthly income from a $1,000,000 investment, the options are diverse and can be tailored to meet personal retirement strategies.

Whether you’re a 65-year-old retiree looking for a stable income stream or a conservative investor seeking better yields than traditional savings tools, there’s a California annuity product for you. Compare rates, use a calculator to visualize potential payouts, and always review each contract’s fine print to ensure the annuity aligns with your needs. Consult a qualified professional to get the most accurate picture of what annuity strategy best serves your retirement path.