Last updated: March 2026 | Reviewed by: AnnuityJournal Editorial Team
Seventy-two used to be the age everyone dreaded because of Required Minimum Distributions. The SECURE 2.0 Act pushed RMDs back to 73, but 72 still sits in a critical planning window — one year before forced distributions begin, Social Security is already maxed, and for many people this is the year a FIA income rider they bought at 62 is finally ready to activate. If you’re 72 and haven’t made your annuity decisions yet, the window is narrowing but it’s not closed.
What’s Different at 72
At 72, the retirement income picture is largely set — but not entirely. A few things make this age worth addressing specifically:
- RMDs begin at 73: You have one year to reposition IRA assets before forced distributions start. An annuity inside an IRA that begins income payments can satisfy RMD requirements going forward.
- Annuity payouts are near their peak: SPIA income at 72 is substantially higher per dollar than at 65 or 67. If you’ve been putting off the decision, the math has been getting better every year you waited.
- Shorter surrender periods matter more than ever: A 10-year surrender on a 72-year-old is ill-advised. Focus on 5-year products or SPIAs with no surrender period at all.
Best Annuity Types at Age 72
SPIA — The cleanest answer at this age
A Single Premium Immediate Annuity at 72 generates some of the highest monthly income of any age in this series. A $200,000 SPIA for a 72-year-old pays approximately $1,550–$1,750/month for life — roughly 50% more per dollar than the same purchase at 62. If you have an income gap and don’t need the principal, a SPIA at 72 is a mathematically compelling tool.
Short-term MYGA — For RMD planning
A 3-year MYGA inside a traditional IRA at 72 matures at 75 with predictable, guaranteed growth. The key planning use: parking IRA money you won’t need for 3 years in a guaranteed 5% environment, with a known balance at maturity when you want to reassess. Note that MYGAs inside IRAs still require RMDs — the annuity doesn’t eliminate that obligation, it just grows the balance predictably in the meantime.
Fixed Index Annuity — Only with short surrender period
A 5 or 7-year FIA at 72 still works for buyers who want index-linked growth and income activation at 77–79. The American Equity AssetShield (7-year) and F&G RetireShield are appropriate products at this age. Avoid anything with a 10-year surrender — that runs to age 82 and creates unnecessary liquidity risk.
What Does an Annuity Pay at 72?
| Annuity Type | $200,000 Deposit | Income Start | Monthly Income |
|---|---|---|---|
| SPIA (immediate) | $200,000 | Now (age 72) | ~$1,550–$1,750/mo |
| FIA + income rider (5yr) | $200,000 | Age 77 | ~$1,600–$1,900/mo |
| MYGA 3-year | $200,000 | Age 75 (lump sum) | ~$232,000 accumulated |
| DIA | $100,000 | Age 82 | ~$3,000–$4,000/mo |
Estimates based on 2026 rates. Actual amounts vary by carrier, state, and contract terms.
The RMD and Annuity Interaction at 72
Required Minimum Distributions begin at 73. Understanding how annuities interact with RMDs before that birthday matters:
- SPIA inside an IRA: Payments generally satisfy RMD requirements for that account — the IRS treats annuity income as the distribution. Clean and simple.
- FIA inside an IRA: The FIA account value counts toward your total IRA balance for RMD calculations. You may need to take additional distributions from other IRA accounts to meet the total RMD requirement.
- MYGA inside an IRA: The MYGA balance counts toward your IRA total. You’ll need to withdraw the RMD amount annually — which may trigger surrender charges if you exceed the free withdrawal provision. Plan accordingly.
- Non-qualified annuity (after-tax money): Not subject to RMDs at all. Outside an IRA, annuities have no forced distribution requirement regardless of age.
What to Avoid at 72
- Any surrender period over 7 years: A 10-year product runs to 82. Healthcare needs, care facility costs, and unexpected expenses make that level of illiquidity genuinely risky at this age.
- Variable annuities: Market risk at 72 is a different animal than at 55. High fees plus downside exposure rarely makes sense.
- Over-annuitizing before 73: Don’t lock up so much in annuities that you can’t cover RMDs from your IRA accounts. Model the RMD obligation first, then decide what’s available for annuity allocation.
Frequently Asked Questions
Can I still buy an annuity at 72 if I have health problems?
For SPIAs and income annuities, poor health actually works against you in the traditional life-only structure — you may not live long enough to recoup your premium. However, period-certain options (e.g., life with 15-year certain) protect beneficiaries regardless of when you die, and deferred annuities pass account value to heirs at death. Discuss your health situation honestly with an independent advisor before purchasing any life-contingent annuity.
Does buying an annuity at 72 affect my estate?
Depends on the product and elections. A life-only SPIA has no residual estate value — payments stop at death. A FIA or MYGA passes the remaining account value to named beneficiaries outside probate, which can be an estate planning advantage. A period-certain SPIA continues payments to beneficiaries if you die before the certain period ends. See our annuity death benefit guide for a full breakdown.
What is a Qualified Longevity Annuity Contract (QLAC) and should I consider one at 72?
A QLAC is a deferred income annuity purchased inside an IRA that allows you to exclude up to $200,000 of your IRA balance from RMD calculations — in exchange for guaranteed income starting at a future date (up to age 85). At 72, a QLAC purchased now with income starting at 82 or 85 can reduce current RMDs while pre-funding late-life income. It’s a legitimate planning tool worth discussing with a tax advisor if you have a large IRA and want to minimize RMD taxation in your early 70s.
Is it too late to get good annuity rates at 72?
No — rates at 72 are among the best of your lifetime for income annuities. You’re getting more monthly income per dollar than at any previous age in this series. “Too late” isn’t the risk. The risk at 72 is picking the wrong product type or locking up too much in a long surrender period. Get the type right, keep the surrender period short, and 72 is a perfectly reasonable time to act.
How does a joint annuity work at 72 if my spouse is younger?
A joint-life SPIA covers both you and your spouse for life, with payments continuing at a specified percentage (50%, 75%, or 100%) after the first death. Because your younger spouse extends the expected payment period, the monthly income will be lower than a single-life option. For a 72-year-old with a 67-year-old spouse, the joint-life payout might be 10–15% lower per month than single-life — but the income security for the surviving spouse is often worth that reduction. See our annuity payout options guide for a full joint vs. single life comparison.
