Use this calculator to estimate the potential monthly and annual income you could receive from a Fidelity immediate annuity. Immediate annuities convert a lump sum into a guaranteed stream of income, typically starting within one year of purchase.
Male
Female
Monthly
Quarterly
Annually
Understanding Immediate Annuities
An immediate annuity, also known as a Single Premium Immediate Annuity (SPIA), is a financial product designed to provide a guaranteed stream of income for a specified period or for the rest of your life. You make a single, lump-sum payment (the premium) to an insurance company, and in return, they begin making regular payments to you almost immediately (typically within one year).
How Fidelity Immediate Annuities Work
While this calculator provides a general estimate, Fidelity, like other providers, offers immediate annuities that convert your savings into predictable income. The exact payout you receive is determined by several factors, including:
Premium Amount: The larger the lump sum you invest, the higher your potential income payments.
Your Age: Generally, the older you are when you purchase an immediate annuity, the higher your periodic payments will be. This is because the insurance company expects to make payments for a shorter duration.
Your Gender: Due to differences in average life expectancy, gender can influence payout rates. Women typically have longer life expectancies than men, which can result in slightly lower periodic payments for women of the same age and premium.
Payout Option: You can choose various payout options, such as:
Single Life: Payments continue for your lifetime only.
Life with Period Certain: Payments continue for your lifetime, but if you pass away before a specified period (e.g., 10 or 20 years), your beneficiary receives payments for the remainder of that period.
Joint Life: Payments continue for as long as either you or your spouse (or another designated person) is alive.
This calculator focuses on a simplified "Single Life" estimate.
Interest Rates: The prevailing interest rate environment at the time of purchase can also impact payout rates. Higher interest rates generally lead to higher annuity payments.
Benefits of Immediate Annuities
Guaranteed Income: Provides a predictable and reliable income stream, which can be crucial for covering essential living expenses in retirement.
Longevity Protection: You can't outlive your income, as payments are guaranteed for life (with a single life option).
Simplicity: Once purchased, there's no ongoing investment management required.
Considerations
Loss of Liquidity: The lump sum premium is converted into an income stream and is generally not accessible for other purposes.
Inflation Risk: Unless you choose an inflation-adjusted annuity (which typically starts with lower payments), the purchasing power of your fixed payments may erode over time due to inflation.
Interest Rate Risk: Once purchased, your payout rate is locked in, regardless of future interest rate changes.
This calculator provides an estimation and should not be considered financial advice. For personalized advice and actual quotes, it's recommended to consult with a financial advisor or Fidelity directly.
.fidelity-annuity-calculator {
font-family: 'Arial', sans-serif;
background-color: #f9f9f9;
padding: 25px;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0, 0, 0, 0.1);
max-width: 700px;
margin: 20px auto;
color: #333;
}
.fidelity-annuity-calculator h2 {
color: #003366; /* Fidelity blue */
text-align: center;
margin-bottom: 20px;
font-size: 24px;
}
.fidelity-annuity-calculator h3 {
color: #003366;
margin-top: 25px;
font-size: 20px;
}
.fidelity-annuity-calculator p {
line-height: 1.6;
margin-bottom: 15px;
}
.calculator-form label {
display: block;
margin-bottom: 8px;
font-weight: bold;
color: #555;
}
.calculator-form input[type="number"],
.calculator-form select {
width: calc(100% – 22px);
padding: 10px;
margin-bottom: 15px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-form button {
background-color: #007bff; /* A standard blue, can be adjusted to Fidelity's specific blue */
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 18px;
display: block;
width: 100%;
margin-top: 20px;
transition: background-color 0.3s ease;
}
.calculator-form button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 20px;
background-color: #e6f7ff; /* Light blue background for results */
border: 1px solid #b3e0ff;
border-radius: 8px;
font-size: 18px;
color: #003366;
}
.calculator-result p {
margin: 8px 0;
}
.calculator-result strong {
color: #003366;
}
.calculator-article ul {
list-style-type: disc;
margin-left: 20px;
margin-bottom: 15px;
}
.calculator-article ul li {
margin-bottom: 5px;
}
function calculateAnnuityPayout() {
var annuityPremium = parseFloat(document.getElementById("annuityPremium").value);
var annuitantAge = parseInt(document.getElementById("annuitantAge").value);
var annuitantGender = document.getElementById("annuitantGender").value;
var payoutFrequency = document.getElementById("payoutFrequency").value;
var resultDiv = document.getElementById("result");
// Input validation
if (isNaN(annuityPremium) || annuityPremium <= 0) {
resultDiv.innerHTML = "Please enter a valid annuity premium.";
return;
}
if (isNaN(annuitantAge) || annuitantAge 90) {
resultDiv.innerHTML = "Please enter a valid age between 50 and 90.";
return;
}
// Simplified Payout Factor Logic (for demonstration purposes)
// These factors are illustrative and do not represent actual Fidelity rates.
// Real rates depend on many factors including current interest rates, specific product, etc.
var baseAnnualFactor = 0.065; // 6.5% for a 65-year-old male
var ageAdjustmentPerYear = 0.002; // 0.2% increase for each year older than 65
var genderAdjustment = 0.002; // 0.2% decrease for females
var effectiveAnnualFactor = baseAnnualFactor;
// Adjust for age
if (annuitantAge > 65) {
effectiveAnnualFactor += (annuitantAge – 65) * ageAdjustmentPerYear;
} else if (annuitantAge < 65) {
effectiveAnnualFactor -= (65 – annuitantAge) * ageAdjustmentPerYear;
}
// Adjust for gender
if (annuitantGender === "female") {
effectiveAnnualFactor -= genderAdjustment;
}
// Ensure factor doesn't go too low (e.g., for very young ages, though restricted by input min)
if (effectiveAnnualFactor < 0.04) { // Minimum 4% annual factor
effectiveAnnualFactor = 0.04;
}
var annualPayout = annuityPremium * effectiveAnnualFactor;
var periodicPayout;
var frequencyMultiplier;
switch (payoutFrequency) {
case "monthly":
periodicPayout = annualPayout / 12;
frequencyMultiplier = 12;
break;
case "quarterly":
periodicPayout = annualPayout / 4;
frequencyMultiplier = 4;
break;
case "annually":
periodicPayout = annualPayout;
frequencyMultiplier = 1;
break;
default:
periodicPayout = annualPayout / 12; // Default to monthly
frequencyMultiplier = 12;
}
// Estimate total payout based on a simplified life expectancy
// These are general averages and not actuarial tables.
var estimatedLifeExpectancy;
if (annuitantGender === "male") {
if (annuitantAge <= 60) estimatedLifeExpectancy = 22;
else if (annuitantAge <= 65) estimatedLifeExpectancy = 18;
else if (annuitantAge <= 70) estimatedLifeExpectancy = 15;
else if (annuitantAge <= 75) estimatedLifeExpectancy = 12;
else if (annuitantAge <= 80) estimatedLifeExpectancy = 9;
else estimatedLifeExpectancy = 7;
} else { // female
if (annuitantAge <= 60) estimatedLifeExpectancy = 25;
else if (annuitantAge <= 65) estimatedLifeExpectancy = 20;
else if (annuitantAge <= 70) estimatedLifeExpectancy = 17;
else if (annuitantAge <= 75) estimatedLifeExpectancy = 14;
else if (annuitantAge <= 80) estimatedLifeExpectancy = 11;
else estimatedLifeExpectancy = 8;
}
var totalEstimatedPayout = annualPayout * estimatedLifeExpectancy;
resultDiv.innerHTML =
"Estimated " + payoutFrequency.charAt(0).toUpperCase() + payoutFrequency.slice(1) + " Payout: $" + periodicPayout.toFixed(2) + "" +
"Estimated Annual Payout: $" + annualPayout.toFixed(2) + "" +
"Estimated Total Payout (over " + estimatedLifeExpectancy + " years): $" + totalEstimatedPayout.toFixed(2) + "" +
"This is an estimation based on simplified factors and does not represent actual Fidelity annuity rates. Actual payouts will vary.";
}