Immediate Annuities
For many retirees in Northwest Ohio, the biggest fear isn't a stock market swoon. It is running out of money.
A Single Premium Immediate Annuity (SPIA) is one of the simplest, most predictable retirement income tools ever created. You make a one-time deposit, and the insurance company starts sending you a guaranteed monthly check - usually within 30-days.
No market risk. No moving parts. No annual decisions. Just income.
​At Serious Money Ohio, we use SPIAs when someone wants certainty, not speculation. When they want a check they can count on, every month, for as long as they live.
Let’s break down how they work, why people use them, and what real‑world income looks like from ages 60 through 80 on a $100,000 deposit.
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How a SPIA Works (In Plain English)
A SPIA is the retirement equivalent of turning your savings into a personal pension:
• You deposit a lump sum (for example, $100,000).
• The insurance company guarantees a monthly income.
• Payments begin immediately—usually within 30 days.
• You choose how long the income lasts:• Life‑only (highest payout)
• Life with refund (your beneficiaries get back what you didn’t receive)
• Joint life (covers two people)
There are no market swings. No annual reviews. No “hope and pray” investing.
Just guaranteed income.
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Why Retirees Use SPIAs
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1. Predictable, pension‑like income
A SPIA is the closest thing most retirees will ever get to a pension. The check shows up every month—rain or shine.
2. Mortality credits = higher payouts
SPIAs pay more than bonds, CDs, or money markets because they use mortality credits—a feature only insurance companies can offer. This is why a 75‑year‑old gets dramatically more income than a 60‑year‑old.
3. Protection from longevity risk
If you live to 100, the checks keep coming. You can’t outlive the income.
4. Simplicity
No fees. No statements to decipher. No market charts.
Just income.
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Real‑World SPIA Income Examples
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Based on a $100,000 deposit, single life, lifetime income, Ohio resident.
Actual payouts vary by carrier and interest rate environment, but these are realistic 2026‑level illustrations.
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Age 60
• Monthly income: ~$520–$560
• Annual income: ~$6,200–$6,700
• Why the payout looks like this:
At 60, the insurance company expects a long payment period—20–30+ years. Income is lower because the timeline is longer.
Age 65
• Monthly income: ~$600–$660
• Annual income: ~$7,200–$7,900
• Typical use case:
Many retirees pair a SPIA with Social Security to create a “retirement paycheck” that covers essential expenses.
Age 70
• Monthly income: ~$720–$800
• Annual income: ~$8,600–$9,600
• Why this age is popular:
Mortality credits start kicking in hard. Income jumps significantly compared to age 60 or 65.
Age 75
• Monthly income: ~$900–$1,050
• Annual income: ~$10,800–$12,600
• Who this fits:
Someone who wants to lock in high guaranteed income later in retirement, often to cover long‑term living expenses.
Age 80
• Monthly income: ~$1,200–$1,400
• Annual income: ~$14,400–$16,800
• Why payouts are so high:
At 80, the insurance company expects fewer years of payments, so the income per dollar deposited is dramatically higher.
​What These Numbers Really Mean
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A SPIA is not an investment.
It’s income insurance.
At 60, the income is modest because the company expects to pay for decades.
At 80, the income is large because the expected payout period is shorter.
But in every case, the SPIA does something no stock, bond, or CD can do:
It guarantees income for life—even if you live far longer than expected.
This is why SPIAs are often used to cover essential expenses:
• Housing
• Utilities
• Groceries
• Insurance premiums
• Healthcare costs
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When your essentials are covered by guaranteed income, the rest of your portfolio can be invested more confidently.
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SPIA vs. Keeping the Money in the Market
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A SPIA is not designed to “beat the market.”
It’s designed to beat uncertainty.
If you invest $100,000 in the market, you might earn more—or you might lose money.
If you put $100,000 into a SPIA, you know exactly what your income will be for life.
For many retirees, that trade‑off is worth it.
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Who a SPIA Is Right For
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A SPIA is a strong fit if you:
• Want guaranteed income you can’t outlive
• Prefer simplicity over market volatility
• Want to cover essential expenses with certainty
• Don’t want to manage investments in your 70s, 80s, or 90s
• Want a pension‑like check every month
A SPIA is not a good fit if you:
• Want liquidity
• Want growth potential
• Need access to the full $100,000
• Are uncomfortable giving up control of the principal
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​The Serious Money Ohio Approach
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We don’t push products.
We solve problems.
If a SPIA fits your retirement income plan, we’ll show you exactly why.
If it doesn’t, we’ll tell you that too.
Our process is simple:
1. We review your income needs.
2. We compare SPIA options from multiple carriers.
3. We show you the exact monthly income at your age.
4. You decide—no pressure, no sales pitch.
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Want to See Your Exact SPIA Income?
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If you want to know what a $100,000, $200,000, or $300,000 SPIA would pay at your age, I can run the numbers and show you a personalized income quote.
Just tell me your age and whether you want:
• Life‑only
• Life with refund
• Joint life
I’ll build and email the comparison for you.
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