How Replacing an Old Annuity Paid 33% More Income

A guy called us a few weeks back. He’s 70, his wife is 60. Back in 2021 he put $500,000 into an annuity. His buddy sold it to him and told him he’d get around $31,000 to $32,000 a year. He also told him he had to annuitize it to get the income.

Neither of those things sat right with him. So he called us.

First thing I want to clear up — you do not have to annuitize.

You have options. Think of it like refinancing a mortgage. When rates change, you can make a move. Same thing works with annuities.

Here’s what we found.

We ran two scenarios for him.

First, a joint payout — income that covers both him and his younger wife. That came in right around $32,400 a year. Same money he was going to get before. But now his wife is covered too. That’s a big deal with a 10-year age gap.

Then we ran a single payout — just on him. That number jumped to $40,000 to $41,000 a year.

That’s a 33% raise. On the same $500,000.

What about the surrender period?

Yes, a new contract means a new surrender schedule. But this is qualified money. He’s not cashing it all out. He’s taking income. RMDs are coming either way. So it’s really not the obstacle people think it is.

Annuities from 2020 and 2021 were built when rates were low. Rates are better now. If you bought one back then and haven’t looked at it since — look at it.

You might not be stuck. You might just need a second opinion.

Check out the FIA and SPIA calculators or schedule a call. We’re both available and we’ll give you a straight answer.

Watch Episode 223: How Replacing a 2021 Annuity Got 33% More Income

Download Episode 223: How Replacing a 2021 Annuity Got 33% More Income on Apple Podcast

Last Updated on April 17, 2026 by Bryan Anderson