
- Mortality Credits – Mortality credits are created when people die sooner than expected and don’t receive as many income payments as they would have if they had lived their full life expectancy. That money goes into a pool that will then pay lifetime income to those people who live longer than their life expectancy. The younger you purchase an annuity, the more mortality credits you’ll likely earn because more annuity owners are likely to die during the longer timespan you own the contract.
- Age – the older you are when you buy, the higher your payouts, but the shorter the rest of your life. This means you’ll receive higher annuity payments for fewer years.
- Interest Rate – The higher the interest rates at time of purchase, the higher your income payouts for life.