Retirement doesn't look the way it used to. More Americans are heading into retirement without a pension, and are instead leaning on savings accounts and investment portfolios that have become increasingly subject to market swings and the slow erosion of inflation. Social Security helps, but for most people, those benefits won't come close to covering the full cost of living comfortably, and that gap tends to widen the longer retirement lasts.

That's precisely why guaranteed income has become such a sought-after commodity. In a financial environment where nothing feels certain, the ability to convert a lump sum of savings into a predictable monthly check — one that doesn't fluctuate based on what the market is doing — carries real value. Annuities are built to do exactly that, and with interest rates still relatively elevated compared to recent history, the monthly payouts available today are more attractive than they've been in years.

But knowing that annuities exist and understanding what they'll actually deliver are two very different things. If you're 60 and considering putting $250,000 into one, the specifics of how much you'd receive each month depend on a range of factors. Below, we'll outline what you can actually expect to collect at this age with an annuity of that size.

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How much will a $250,000 annuity pay monthly at age 60?

If you're 60 and ready to convert $250,000 into a guaranteed income stream through an immediate fixed annuity, here's what you can expect to receive each month, according to an analysis of Cannex data by Annuity.org:

Monthly annuity payments for a man, age 60, with a $250,000 annuity:

• Single life: $1,325 per month
• Life + 10-year certain: $1,295 per month
• Life + 20-year certain: $1,238 per month
• Joint life (same age): $1,205 per month
• Period certain (20 years): $1,115 per month

Monthly annuity payments for a woman, age 60, with a $250,000 annuity:

• Single life: $1,258 per month
• Life + 10-year certain: $1,230 per month
• Life + 20-year certain: $1,183 per month
• Joint life (same age): $1,138 per month
• Period certain (20 years): $1,115 per month

These figures represent what a $250,000 immediate fixed annuity could pay under the current rate environment, but they're just a starting point rather than a guarantee. In reality, several factors shape these numbers. Gender, for example, plays a significant role. Because women statistically have longer life expectancies, insurers anticipate making payments over a longer period for female annuitants and adjust the monthly amount downward accordingly. The gap between a male and female single-life payout at 60 comes to $67 per month — or nearly $800 annually.

Your choice of payout structure also matters significantly. A single life annuity delivers the largest monthly check but stops entirely when you die, with nothing left for a spouse or heirs. Adding a period-certain guarantee — 10 or 20 years — means payments continue to a named beneficiary if you pass away early, but that added security comes with a trimmed monthly payout. A joint life annuity extends coverage to a spouse for as long as either of you lives, but produces the lowest monthly amount of the lifetime options because the insurer is taking on more longevity risk.

It's also important to keep in mind that buying at 60 means the insurer expects to make payments over a longer horizon than if you waited until 65 or 70. In turn, the same $250,000 invested at a later age would likely produce a higher monthly check, simply because the expected payout window is shorter.

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Who should consider a $250,000 annuity for retirement?

An annuity isn't the right tool for everyone, but for the right person, it can form a reliable foundation for a retirement income plan. The clearest candidates are those who don't already have a guaranteed income source — a pension or substantial Social Security benefit — and who want to reduce their exposure to market volatility.

If you're someone who finds the idea of drawing down a portfolio stressful, or who worries about the very real risk of outliving your savings, converting a portion of that nest egg into a guaranteed monthly payment can bring real peace of mind. A $250,000 annuity generating $1,200 or more per month likely won't cover all of your living expenses on its own, but paired with Social Security, it could cover the essentials and eliminate some of the financial anxiety that comes with an open-ended retirement.

That said, annuities do come with trade-offs. Once you hand over the lump sum to purchase one, that money is no longer liquid, meaning that it can't be accessed for emergencies or opportunities. And depending on the payout structure, your annuity may not pass to your heirs. So, those considering an annuity should weigh it alongside their broader financial picture, including other assets, income sources and health outlook.

The bottom line

A $250,000 immediate fixed annuity purchased at age 60 can generate over $1,000 per month on average, with the total amount dependent on factors like your gender and the payout structure you select. That's a meaningful income stream. While it's not a full retirement solution on its own, it is a powerful piece of the puzzle for those who value predictability over potential. If you're weighing this option, getting personalized quotes from multiple insurers and consulting with a financial advisor can help ensure the structure you choose aligns with your long-term goals.