What determines the amount of an annuity?
The main factors are the amount of money used to purchase it, the market interest rates at the time, your age at the time, and the annuity options you choose. In addition, if you choose to provide a survivor benefit, the age of the designated survivor in comparison with yours also matters.

You can choose an annuity only for yourself, a joint annuity with survivor benefits to a spouse, or a joint annuity with survivor benefits to someone other than a spouse. You also can choose inflation protection (of 3 percent per year), a guarantee of a cash refund if you (and your designated survivor beneficiary, if applicable) die before receiving out as much as you used to buy the annuity, and a guarantee of payments lasting at least 10 years from the purchase, if you do not designate a survivor beneficiary.

An annuity calculator at www.tsp.gov takes these variables into account.

2021 Digital Almanac

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