One of the most common questions I get is: "Does it matter when I start?" Short answer: yes. Here's why.
Same $200,000, three starting points.
These are illustrative figures, not quotes — real payouts depend on the carrier, product, and rates at the time.
- Income starting at 62: roughly $1,050 a month for life.
- Income starting at 67: roughly $1,300 a month.
- Income starting at 72: roughly $1,600 a month.
Same money. The later start produces more because the money had longer to grow and the payout is spread over fewer expected years.
But "later" isn't automatically better.
If you need the income at 62 to cover a gap, waiting until 72 doesn't help — you'd be drawing down other accounts in the meantime, possibly in a down market. The right start date is the one that matches when the gap opens, not the one with the biggest number.
The other "when": when you buy.
Buying at 60 and deferring income to 67 usually produces more than buying at 67 and starting immediately, because the income base has seven years to grow. That's the quiet advantage of deciding early even if you don't need the money yet.
What this is really about.
It's not a race to buy. It's that when is a lever you control, and most people don't realize how much it moves the number. Pulling it thoughtfully — matched to your actual timeline — is where a good plan starts.
If you'd like to see what your own three starting points look like, send me your age and the amount you're considering and I'll run it.
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Author of Indexed Annuity Secrets and founder of Pacific Ridgeway Insurance Solutions in San Diego. Navy veteran. Licensed financial professional, CA #4132743.
Fixed indexed annuities are insurance products, not investments. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. This article is for educational purposes only and is not financial, investment, tax, or insurance advice.