What is the payout rate of an annuity?

But the payout rate is different than the annuity return rate, which is the annualized earning rate of your investment. If the payout rate of $100,000 immediate annuity is 6%, generating $6,000 a year, a portion of that income is a return of principal, so it cannot represent the real rate of return on the investment.

What is the average annuity return?

An investor can expect an average rate of return between 4% to 6%. The average annuity return for variable annuities is potentially the highest among the three but carries a higher risk level. It greatly depends on the underlying investment performance.

What is the average equity-indexed annuity rate of return?

The average equity-indexed annuity rate of return varies based on the stock market’s performance, your participation rate and your cap. Again, these returns are entirely dependent on the specifics of your annuity contract. There are two rates of return for your annuity.