Using FIA's for Guaranteed Lifetime Income

One of the biggest concerns for retirees today is running out of income. While sources like Social Security—and in some cases pensions—provide a foundation, they often are not enough to fully support the lifestyle most retirees want, especially with the rising cost of living over time.

This is where fixed index annuities (FIAs) can play an important role.

Social Security was never designed to be your only source of income—it was meant to cover basic living expenses. Pensions, while valuable, are becoming less common and may not fully meet income needs.

A fixed index annuity can help bridge the gap by providing:

• A predictable, reliable income stream 
• Additional monthly cash flow 
• Greater confidence in covering essential and discretionary expenses 

By combining:

• Social Security 
• Pension income (if available) 
• Guaranteed annuity income 

…you can build a more stable and diversified income plan.

Fixed index annuities offer the ability to generate guaranteed lifetime income through a feature commonly called a Guaranteed Minimum Withdrawal Benefit (GMWB) rider.

Here’s how it works:

• You allocate funds into the annuity 
• Over time, your income base grows 
• When you’re ready, you “turn on” income 
• You begin receiving monthly payments for life 

Once income is activated:

• Payments are guaranteed for the rest of your life 
• Even if your account balance eventually goes to zero 
• The insurance company continues to pay you 

This creates a powerful sense of financial security—knowing that no matter how long you live, you will continue to receive income.

One of the biggest challenges in retirement is inflation—the gradual increase in the cost of goods and services over time.

Without proper planning:

• Your expenses may rise 
• But your income may stay the same 

By using a fixed index annuity:

• You can position a portion of your assets for growth before income begins 
• This can help increase your future income payments 
• Helping you better keep pace with rising costs 

This is one of the most common misconceptions about annuities—and it is not true when structured properly.

When using a fixed index annuity with a GMWB rider:

• If you pass away before your account value is depleted 
• Your beneficiary will receive 100% of the remaining account balance 

This means:

• Your money does not disappear 
• Your family is still protected 
• You maintain control over where your assets go 

Using a fixed index annuity for lifetime income can help:

• Reduce the risk of outliving your money 
• Provide predictable monthly income 
• Complement Social Security and pensions 
• Offer peace of mind in uncertain markets 
• Protect your legacy for your beneficiaries 

Retirement is not just about building wealth—it’s about turning that wealth into reliable income that lasts as long as you do.

Fixed index annuities provide a way to create your own personal pension, helping ensure that no matter what happens in the markets—or how long you live—you have a dependable income stream to support your lifestyle.