One of the biggest fears retirees have is simple—and very real:
“What if I run out of money?”
If you’re close to retirement (or already retired), you may be thinking about getting out of the stock market.
You want protection. You still want growth. And you definitely don’t want to go back to work.
That’s exactly where annuities come into the conversation.
Let’s break this down in plain English.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using our annuity calculator
The Real Retirement Problem Most People Miss
Most retirees rely on investment accounts to create income.
That usually means following a “safe withdrawal rate” like 4%.
- $1,000,000 × 4% = $40,000 per year
- Sounds reasonable… until the market drops
If the market falls 20–30% early in retirement, many retirees are forced to cut income just to survive.
That’s called sequence of returns risk, and it’s one of the biggest threats to retirement plans.
💡 Pro Tip: The market isn’t designed to pay you a paycheck for life. It’s designed for growth—not income certainty.
How Annuities Solve the “Running Out of Money” Problem
An annuity is different.
Instead of hoping your money lasts, an annuity provides contractual lifetime income.
That means:
- Your income is guaranteed
- It doesn’t depend on market performance
- It never runs out—even if your account balance hits zero
The goal isn’t to preserve the account forever.
The goal is to maximize dependable income.
👉 Want to see what kind of income an annuity could generate for you?
Why Annuities Can Pay More Than Market Withdrawals
Here’s the key difference.
With investments, you’re limited by how much you can safely withdraw.
With annuities, you’re leveraging:
- Mortality credits
- Guaranteed income riders
- Contractual payout rates
That often allows annuities to pay significantly more than a traditional portfolio withdrawal.
Example thinking:
- $700,000 portfolio × 5% = $35,000/year (not guaranteed)
- An annuity may generate $55,000+ per year, guaranteed for life
And that income never goes down, even during market crashes.
Real Example: Turning $600,000 Into Lifetime Income
Let’s look at a real-world scenario.
- Married couple, age 62
- Retire at 65
- $600,000 allocated to an annuity (not their entire portfolio)
- Florida residents
By waiting until age 65, the income rider allows the benefit base to grow substantially.
In one example:
- $600,000 grows to a $930,000 income base
- Joint lifetime payout: about $55,000 per year
- Guaranteed for both spouses, for life
That income continues:
- If the market crashes
- If the account balance depletes
- As long as either spouse is alive
👉 Want to compare top-paying annuities right now?
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Single vs. Joint Income: Why It Matters
Annuities offer flexibility depending on your situation.
- Single life income pays more
- Joint income pays slightly less—but continues for your spouse
For example:
- Single payout rate: ~6.25%
- Joint payout rate: ~5.95%
You don’t always have to decide immediately.
Some annuities let you choose later, when you actually start income.
💡 Pro Tip: Not all annuities offer this flexibility. Proper planning matters.
Why Many Retirees Use Annuities Alongside Investments
Most people don’t put all their money into annuities.
Instead, they:
- Secure their core income with an annuity
- Invest the rest for growth, liquidity, and legacy
That way:
- Your bills are always covered
- Market volatility becomes much less stressful
- You can invest more confidently with your remaining assets
This approach gives many retirees peace of mind—and better sleep.
Can an Annuity Really Prevent You From Running Out of Money?
If structured correctly, yes.
Annuities are designed to:
- Provide guaranteed income
- Eliminate longevity risk
- Protect against market downturns
- Create predictable retirement cash flow
They aren’t about chasing returns.They’re about certainty.
Need help with finding the best annuity for your retirement?
Click here to schedule a call with me.
On the call, I can help you:
- Determine what type of annuity is best for you
- Find the highest paying annuities for your unique situation
- Answer any other questions you may have