Three Ways to Design Guaranteed Lifetime Income
There are three ways you can provide guaranteed lifetime income using annuities.
- Deferred Income Annuity (DIA) – DIA provides guaranteed lifetime income starting at a future predetermined date.
- Income Rider – A deferred annuity with an income rider allows your investment to grow while protecting the principal. Lifetime income starts when the rider is turned on. These riders are most often available on fixed indexed annuities and are known as Guaranteed Minimum Withdrawal Benefit (GMWB) or Guaranteed Minimum Income Benefit (GMIB)
- Two-Stage Approach
- Stage 1: Protect and grow your money using a Multi-Year Guaranteed Annuity(MYGA) or a Fixed Indexed Annuity(FIA).
- Stage 2: When ready for income, perform a tax-free exchange of your deferred annuity into a Single Premium Immediate Annuity (SPIA) or an income rider option.
Our latest Insurance Insights™- Designing Lifetime Income is a case study comparing these three guaranteed income options for Jack & Jill.
Going from Accumulation to Decumulation
The Alliance for Lifetime Income organization surveys how people think about retirement income planning. They interview clients and advisors. Their recent report examines the rapidly changing retirement income planning landscape.
2024 Protected Retirement Income & Planning Study
Annuity Myths & Today’s Reality
IIC offers a CFP® CE course discussing Annuity Myths and Today’s Reality. You can watch this on our YouTube Channel (link below) or share it with those looking to learn more about how annuities can enhance a retirement outcome. Please reach out if you are interested in IIC hosting a CE event for your firm or study group.