How Much Does It Cost To Buy An Annuity Apr 2026

The "cost" of an annuity is rarely a single sticker price; instead, it is a combination of your and a variety of ongoing fees that vary by product complexity. While some buyers start with as little as $2,500, the national average investment is approximately $150,000. Initial Investment (Premium)

: Usually require at least $25,000 due to their more complex investment structures. Ongoing Fees and Charges how much does it cost to buy an annuity

Ongoing costs are typically higher for "variable" or "indexed" products and lower for "fixed" or "immediate" products. 1. Commissions (1% to 8%) The "cost" of an annuity is rarely a

There is no universal minimum, but insurers set practical starting points based on the annuity type: Ongoing Fees and Charges Ongoing costs are typically

Most annuities include a commission paid by the insurer to the agent or broker.

: Often require a larger initial investment, frequently starting at $25,000 to $50,000 , because they begin paying out income immediately.

: Often require a lower entry point, typically between $5,000 and $10,000 .