For many older Americans, the transition from saving for retirement to actually spending in retirement can be uncomfortable. After decades of building up your retirement funds, investing wisely and diversely and keeping an eye on market trends, the focus suddenly shifts to preserving what you've saved — and, in many cases, figuring out how to turn it into a steady paycheck. But at a time when inflation is still chipping away at purchasing power and market corrections seem to come without warning, that task can feel more daunting than usual.

That's why retirees are exploring guaranteed retirement income solutions, like annuities. Unlike stocks or mutual funds, annuities aren't designed to grow your money. They're designed to pay it back to you, month after month, often for the rest of your life. In other words, annuities are a different kind of financial product with a different goal: replacing uncertainty with predictability.

If you've built up a sizable retirement fund and are wondering how far it can take you, you might be wondering what a $750,000 annuity would pay each month. And, while the answer depends on a few key details, the potential income could be more substantial than you think.

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How much will a $750,000 annuity pay per month?

The exact monthly payout from a $750,000 annuity depends on several key factors, like your age at the time of purchase, your gender and whether you're opting for a single or joint life annuity. The interest rate environment can also play a role, as a higher-rate environment typically equates to larger monthly payouts, while a lower-rate environment does the opposite.

Here's what the payouts might look like for a fixed immediate annuity purchased with $750,000, according to . These payouts reflect lifetime income from an immediate annuity, meaning the income starts shortly after purchase and continues for life:

• Age 60:
• A 60-year-old male: About $4,430 per month
• A 60-year-old female: About $4,294 per month
• A joint life annuity at age 60: $3,948 per month
  
• Age 65:
• A 65-year-old male: About $4,857 per month
• A 65-year-old female: About $4,655 per month
• A joint life annuity at age 65: About $4,212 per month
  
• Age 70:
• A 70-year-old male: About $5,483 per month
• A 70-year-old female: About $5,183 per month
• A joint life annuity at age 70: About $4,594 per month
  
• Age 75:
• A 75-year-old male: About $6,404 per month
• A 75-year-old female: About $5,952 per month
• A joint life annuity at age 75: About $5,131 per month
  
• Age 80:
• An 80-year-old male: About $7,844 per month
• An 80-year-old female: About $7,196 per month
• A joint life annuity at age 80: About $5,993 per month

In general, men with immediate annuities will receive slightly higher payments than women, simply because the average life expectancy for men is shorter, so the insurance company expects to pay out over fewer years. And, if you're purchasing a joint life annuity, which continues paying a surviving spouse after your death, the monthly amount will be lower to account for the longer expected payout period. Likewise, if you want features like inflation adjustments or a guaranteed period, where payments continue to heirs even if you die early, that can reduce your monthly income as well.

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Is a $750,000 annuity worth it?

A $750,000 annuity can be worth it for the right retirees. Whether or not this type of annuity is the right move for you, though, generally depends on what you're looking to accomplish with your retirement savings.

One major benefit of a $750,000 annuity is that the income is guaranteed and predictable. For example, at age 70, a man receiving nearly $5,500 per month from his annuity could cover a good portion of his retirement expenses without having to worry about market fluctuations. For couples, it could provide a strong foundation to build the rest of their retirement income plan around.

Here's when a $750,000 annuity might be worth it:

• When you're focused on stability: If your top concern is making sure your basic needs are met no matter what, locking in monthly payments may give you peace of mind.
• When you don't have a pension: Annuities can function like a do-it-yourself pension for people who don't have one through work.
• When you're concerned about outliving your money: Lifetime annuities are one of the few products that protect against longevity risk, or the risk of running out of money in your 80s or 90s.

That said, there are also trade-offs to consider. Once you purchase an annuity, your money is mostly locked up. While some contracts allow for limited withdrawals or return-of-premium options, most don't offer the same liquidity you'd get with a traditional investment account.

There's also the tax angle: If you buy the annuity with pre-tax dollars (like from a traditional individual retirement account or 401(k)), your monthly payments will be taxed as regular income. If you use after-tax money, a portion of your monthly check will be considered a return of principal and not taxed, but the rest will be.

And keep in mind that not all annuities are created equal. Fees, terms and flexibility can vary widely, so it's essential to compare products and consult with a financial advisor before committing.

The bottom line

A $750,000 annuity can generate between $4,300 and $7,800 per month depending on your age, gender and annuity structure. For retirees who want guaranteed income they can count on, that means this type of annuity is a powerful tool for creating financial security and reducing stress during retirement.

But while the payouts can be generous, annuities aren't for everyone. The trade-offs — especially around liquidity and contract terms — mean they should be just one part of a broader retirement strategy. Before buying, take a close look at your full financial picture, including your need for flexibility, your risk tolerance and your other sources of retirement income.

In the right situation, though, a $750,000 annuity can offer something the stock market simply can't: steady, worry-free income for the rest of your life.