Retirement used to be about saving. Today, it's just as much about how you turn those savings into income — income that lasts as long as you do. For many retirees, the biggest fear isn't the market; it's running out of money.
The shift from accumulating to distributing
During your working years, the goal is growth. In retirement, the goal shifts to reliability — making sure your income covers essentials no matter what the market does.
Three sources of retirement income
Most retirees draw income from three places:
- Social Security — guaranteed, but rarely enough on its own
- Pensions and retirement accounts — 401(k)s, IRAs, and investments
- Guaranteed income products — like annuities
Where annuities fit
A fixed or fixed indexed annuity can create a stream of income you can't outlive. It won't be the right tool for every dollar, but it can serve as the "paycheck" portion of your retirement — covering essentials so your investments have time to recover from market dips.
A simple framework
Think of retirement income in layers:
- Essentials — housing, food, insurance, healthcare → cover with guaranteed income
- Lifestyle — travel, hobbies, family → cover with flexible income
- Legacy — what you want to leave behind → protect with growth and insurance
Start with a plan
There's no universal answer — the right mix depends on your savings, expenses, health, and goals. A free retirement income review can help you see where you stand and what options may close any gap.
