Last updated: March 2026 | Reviewed by: AnnuityJournal Editorial Team
Age 67 is full retirement age for everyone born in 1960 or later — the year Social Security pays your complete, unreduced benefit. For most people it’s also the year the math gets simple: income is either there or it isn’t. If your guaranteed income covers your bills, you’re fine. If it doesn’t, an annuity at 67 is one of the cleanest ways to close that gap permanently.
Why Age 67 Is a Critical Decision Point
At 67, three things often happen simultaneously:
- Social Security is now available at full value — no reduction for claiming early
- Most people have either retired or have a firm retirement date in sight
- The gap between “what I have guaranteed” and “what I need” becomes impossible to ignore
This convergence makes 67 one of the most common ages for annuity purchases. The buyers who get it right are the ones who use the annuity to cover only the guaranteed income gap — not their entire savings.
Best Annuity Types at Age 67
SPIA — The Cleanest Option for Immediate Income
At 67, a Single Premium Immediate Annuity pays more per dollar than at any age we’ve covered so far. A $200,000 SPIA for a 67-year-old generates approximately $1,250–$1,400/month for life. That’s meaningful guaranteed income for a relatively modest premium.
If you’re claiming Social Security at 67 and still have an income gap, a SPIA is the most direct tool. You define the gap, buy the SPIA to cover it, and the income question is resolved permanently.
Fixed Index Annuity — Still Viable for a 5-Year Deferral
If you can defer income until 72, a fixed index annuity with an income rider still makes sense at 67. Five years of a 7% simple roll-up on $200,000 produces an income base of $270,000 — generating roughly $13,500–$15,000/year in guaranteed lifetime income at 72. The catch: you need other liquid assets to cover your income gap for those 5 years.
MYGA — Best for Short-Term Safe Growth
A 3-year MYGA at 67 matures at 70 with guaranteed growth and no market risk — a clean way to park money you won’t need for 3 years while you decide your longer-term income strategy. Current 3-year MYGA rates near 5% are competitive with almost any alternative for that time horizon. See current MYGA rates.
What Does an Annuity Pay at 67?
| Annuity Type | $200,000 Deposit | Income Start | Monthly Income |
|---|---|---|---|
| SPIA (immediate) | $200,000 | Now (age 67) | ~$1,250–$1,400/mo |
| FIA + income rider | $200,000 | Age 72 (5yr defer) | ~$1,125–$1,300/mo |
| MYGA 3-year | $200,000 | Age 70 (lump sum) | ~$232,000 accumulated |
| DIA (deferred income) | $200,000 | Age 75 | ~$2,000–$2,400/mo |
Estimates based on 2026 rates. Actual amounts vary by carrier, state, and contract terms.
The Full Retirement Age Advantage
Reaching full retirement age at 67 unlocks a few things beyond the obvious:
- No Social Security earnings test: Before full retirement age, earning above a threshold reduces your Social Security benefit. At 67, you can earn any amount without reduction.
- Spousal benefits at full value: A spouse claiming on your record also gets full spousal benefits once you reach FRA.
- Still time to delay to 70: Delaying Social Security from 67 to 70 increases your benefit by 8% per year — a guaranteed 24% raise for waiting 3 more years. An annuity bridging those 3 years may be worth it if you have the assets.
Should You Still Delay Social Security at 67?
Possibly — and an annuity makes the math work. Delaying Social Security from 67 to 70 earns you 8% per year in increased benefits, guaranteed, for life. That’s a better return than almost any bond or CD.
If you have $150,000–$250,000 that you’d otherwise leave in a savings account, a short-term period-certain annuity or MYGA can generate income from 67 to 70 while you let Social Security grow to its maximum value.
Example: James, 67, has $500,000 saved. Social Security at 67: $2,400/month. Social Security at 70: $2,976/month. He places $120,000 in a 3-year period-certain annuity paying $3,400/month for 36 months, delays Social Security until 70, and collects $576/month more — for life. The annuity cost was $120,000. The lifetime Social Security gain typically exceeds that amount if he lives past his mid-70s.
Frequently Asked Questions
Is 67 too late to buy an annuity?
No. In fact, annuity payouts increase with age — a 67-year-old gets more per dollar than a 62-year-old. The question isn’t whether it’s too late; it’s whether the annuity solves a real problem in your specific income plan.
What if I’m still working at 67?
Many people claim Social Security at 67 while still working. That’s fine — there’s no penalty after FRA. If you don’t need the income immediately, you can delay Social Security until 70 for the higher benefit, and use an annuity or existing savings as a bridge. Or simply keep deferring both and let your savings compound.
How does a joint annuity work for a married couple at 67?
A joint-life SPIA covers both spouses for life — income continues at full or reduced rate (typically 50–100% of the original amount) after the first death. The tradeoff: joint-life payouts are lower per month than single-life payouts because the carrier is covering two lives. For a married couple, joint coverage is usually the right choice. See our annuity payout options guide for a full comparison of single vs. joint life elections.
Can I still contribute to a retirement account at 67?
Yes — if you have earned income, you can still contribute to a traditional or Roth IRA at 67 (the age limit was eliminated). You can also contribute to a 401(k) if still employed. Whether an annuity or continued retirement account contributions make more sense depends on your tax situation and income needs. See our annuity vs. 401(k) guide.
What is the best annuity for a 67-year-old with $300,000?
It depends on your income gap and timeline. If you need income now, a SPIA covering your gap is the most efficient use of $150,000–$200,000 of that $300,000, leaving the rest liquid. If you can defer 5 years, a FIA with an income rider on $200,000 builds a higher guaranteed income floor by 72. Use our income calculator to model both scenarios with your actual numbers.
