For the majority of Americans heading into their 60s, their Social Security benefits will eventually provide at least some foundation for their retirement plans. But the gap between what those benefits cover and what a comfortable retirement actually costs can be high, especially in today's landscape, where the cost of living is rising rapidly amid other economic hurdles. As a result, guaranteed income has become one of the most valuable things money can buy in retirement (and one of the hardest to come by without a pension).  

That's exactly the space annuities are designed to fill. These insurance-based products are made to convert a lump sum of cash into a predictable income stream, offering a level of stability to retirees that market-based investments can't always match. But while the concept of an annuity is relatively straightforward, the actual payout can vary widely depending on when you buy, how you structure the contract and broader economic conditions.

As a result, it's important to understand exactly what an annuity will deliver before you sign on the dotted line. So how much can you expect to get each month if you're considering putting $100,000 into an annuity at age 60? 

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How much will a $100,000 annuity pay each month at age 60?

If you're 60 and looking to convert $100,000 into a reliable monthly income stream through an immediate 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 $100,000 annuity:

• Single life: $530 per month
• Life + 10-year certain: $518 per month
• Life + 20-year certain: $495 per month
• Joint life (same age): $482 per month
• Period certain (20 years): $446 per month

Monthly annuity payments for a woman, age 60, with a $100,000 annuity:

• Single life: $503 per month
• Life + 10-year certain: $492 per month
• Life + 20-year certain: $473 per month
• Joint life (same age): $455 per month
• Period certain (20 years): $446 per month

These figures represent what a $100,000 immediate fixed annuity could pay under the current rate environment, but they're a starting point rather than a guarantee. Ultimately, several factors will shape exactly where your payout lands, including the following:

• Gender: Men and women buying at the same age receive different monthly payments because women statistically have longer life expectancies. Since insurers anticipate making payments over a longer period for female annuitants, they adjust the monthly amount downward to account for the extended obligation. The gap between a male and female single-life payout at 60 comes to $27 per month — or roughly $324 per year.
• Type of annuity and payout structure: A single life annuity maximizes your monthly payment but ends when you die, with nothing going to heirs or a spouse. Adding a period-certain guarantee — let's say, 10 or 20 years — means payments will continue to a beneficiary even if you pass away early, but it trims your monthly check in exchange for that security. A joint life annuity extends coverage to a spouse but produces the lowest monthly payout of the lifetime options.
• Interest rates: Fixed annuity payouts are directly tied to the rate environment at the time of purchase, since insurers invest your premium in bonds and other fixed-income instruments. Today's higher rates allow insurers to generate better returns and pass along larger monthly payments, so locking in an annuity sooner rather than later could mean more income over time.
• Age at purchase: At 60, you're buying earlier than most annuity purchasers, which means the insurer expects to make payments for a longer period and prices your monthly check accordingly. The same $100,000 invested at 65 would likely generate a higher monthly payment, simply because the expected payout window is shorter. 

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How to decide if a $100,000 annuity is right for you

An annuity isn't the right tool for everyone, but for the right person, it can anchor a retirement income plan in a way few other products can. The questions to ask yourself during this process center on three things: How much income predictability do you need? How important is liquidity? And what other guaranteed income sources do you already have?

If you have no pension and want to ensure a baseline of fixed income on top of Social Security, converting a portion of your savings into an annuity can serve as a personal pension of sorts. It's especially worth considering if you're concerned about the prospect of outliving your money.

That said, annuities do involve real trade-offs. Once you hand over the premium, you typically lose access to that principal. Many annuity products also carry fees and surrender charges that can eat into returns, particularly with variable and indexed varieties. And if you die early, your heirs may receive little or nothing from your annuity, depending on the payout structure you chose.

The bottom line

At 60, a $100,000 annuity can deliver meaningful guaranteed income, but the monthly payout will vary depending on your gender, the type of annuity and the features you choose. And, that income is stable, predictable, and guaranteed for life, which has real value. The key to determining whether it's worth it for you, though, is understanding what you're trading: guaranteed income in exchange for flexibility and potential growth. For some retirees, that certainty is worth it. For others, keeping more control over their savings may be the better path.