It’s one of the toughest questions many pre-retirees face: What happens if your investments don’t generate enough income to retire comfortably?
Maybe you’ve worked hard, saved diligently, and invested wisely — but the numbers still don’t seem to add up. You’re not alone. Many retirees find that their 401(k), IRA, or brokerage accounts simply don’t produce the steady income they hoped for.
Let’s break down your options and talk about one of the most overlooked solutions for this problem — guaranteed lifetime income through annuities.
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.
Why Traditional Investments Can Fall Short
The market can be unpredictable. Even strong portfolios face risk when you start withdrawing money:
- Sequence of returns risk: Poor market performance early in retirement can drain your portfolio fast.
- Longevity risk: You might live longer than your money lasts.
- Interest rate risk: Low bond yields can make “safe” investments underperform.
When your nest egg doesn’t produce enough income, you face a tough choice: spend less, work longer, or take on more risk.
💡Pro Tip: Market volatility can hurt more in retirement than during your working years — because you’re withdrawing, not adding, to your savings.
How Annuities Can Help Replace Unreliable Income
This is where annuities come in.
An annuity can turn a portion of your retirement savings into guaranteed income for life, no matter how long you live or what happens in the stock market.
For example, many retirees are surprised to learn how much income an annuity can generate from what they thought was a “small” retirement balance.
👉Want to see your potential annuity income? Use the free annuity calculators and compare payouts instantly.
Turning $500,000 Into Lifetime Income
Let’s say you have $500,000 and need income now or soon. Here’s what annuities can do:
- Immediate Income (Age 60): About $32,000 per year for life.
- Deferred 2 Years (Age 62): Around $39,000 per year for life.
- Deferred 5 Years (Age 65): Up to $52,000 per year for life.
That’s the power of deferring — and it’s guaranteed by a contract.
In one example, a Nationwide annuity offered:
- 8% guaranteed growth rate (roll-up)
- 25% base bonus on day one
- A projected benefit base growing from $500,000 to $875,000 in five years, which translates to $52,000 annually for life.
💡Pro Tip: Even if your account value runs out later, your income continues as long as you live — that’s what makes annuities so powerful.
The Trade-Offs You Should Know
Annuities aren’t for everyone. They trade growth potential for security and guarantees.
- Your money won’t be in the stock market anymore.
- There are rider fees that slightly reduce your account value.
- Once the account balance is depleted, the death benefit typically ends — but your income doesn’t.
Still, for many retirees, that guaranteed paycheck every month is worth far more than market exposure.
What If You Still Don’t Have Enough?
If your income gap remains even after exploring annuities, you can:
- Work a bit longer to grow your savings and delay withdrawals.
- Be more aggressive in your investment portfolio (with caution).
- Lower your spending or plan a gradual, phased retirement.
- Supplement with part-time work — many retirees find purpose and structure this way.
The key is having a clear plan — and understanding how much guaranteed income you can lock in now.
Conclusion
If your investments aren’t generating enough income, don’t panic — plan.
With the right mix of guaranteed income and market growth, you can enjoy retirement without the stress of outliving your money.
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
Answer any other questions you may haves