When most people think about retirement planning, their minds go straight to savings: 401(k)s, IRAs, mutual funds, and the stock market. That makes sense: for decades, the prevailing wisdom has been to accumulate as much wealth as possible during your working years. But what happens once you reach retirement and need to turn that carefully built nest egg into a steady stream of income that lasts for life?

That’s where many retirement plans fall short. A plan that focuses only on accumulation — without addressing what’s called the “distribution phase” — is incomplete. It’s like training for a marathon but not planning for the actual race day. You might have the tools, but you’re missing the strategy.

Saving is only half of the retirement journey. Annuities add guaranteed income and peace of mind to your future.

The Missing Piece: Guaranteed Income

Annuities are uniquely designed to provide what other investments cannot: guaranteed income for life. Unlike a 401(k) or IRA, which can fluctuate with the market and get depleted over time, an annuity can offer a reliable monthly paycheck, no matter how long you live. This income provides peace of mind and financial stability, especially in changing or uncertain markets. Without guaranteed income in retirement, you’re managing risk in every market cycle.

Think of annuities as the retirement planning world’s answer to the pension. As traditional pensions become more and more rare, annuities let individuals create their own version of a personal pension plan — one that provides predictability and confidence.

Saving is only half of the retirement journey. Annuities add guaranteed income and peace of mind to your future.

Why Other Plans Miss the Mark

Relying solely on the market means taking on unnecessary risk during retirement. The sequence of returns, or the order in which you experience gains and losses, can really impact how long your money lasts. A few bad years early in retirement can shrink your portfolio faster than you expect, especially if you’re regularly withdrawing funds.

By including an annuity in your plan, you’re not replacing these growth-oriented accounts; you’re balancing them. This creates a dual approach: one part of your portfolio can stay invested for long-term growth, while the other makes sure your essential expenses are covered with guaranteed income, regardless of the market.

Longevity and Peace of Mind

Another important part of retirement is “longevity,” or outliving retirement funds. People are living longer than ever, which is a blessing, but also a financial challenge. How do you make your money last 25 or 30 years — or even longer? With annuities, you don’t have to guess. You can ensure income for life, no matter how long that life may be.

This protection is something that investment accounts alone simply can’t offer — and while Social Security might provide some guaranteed income, it often isn’t enough to cover all of your retirement needs.

The Annuities Plan

A comprehensive retirement plan should include three key components:

1. Growth: For continued wealth accumulation and inflation protection.
2. Liquidity: For flexibility and unexpected expenses.
3. Income: For guaranteed, predictable cash flow.

Annuities are the cornerstone of that third pillar. Without them, retirees are often forced to withdraw from their portfolios during downturns, depleting assets faster than planned. With annuities, you can give your other investments time to recover.

Without guaranteed income in retirement, you’re managing risk in every market cycle.

Annuities don’t just fill a gap in your retirement plan; they create a foundation. They turn retirement from a guessing game into a confident, purpose-driven stage of life. A retirement plan without annuities is only doing half the job — make sure your plan doesn’t just get you to retirement, but gets you through it too.

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