Retirement Income
Turning what you saved into something that arrives every month.
Most of working life is spent accumulating. Retirement asks a different question: how do savings become a paycheck that keeps arriving, for as long as you need it? That shift catches a lot of people off guard, because the strategies that build a balance are not the same ones that turn it into dependable income.
The questions worth answering first
- What does your month actually cost? Not a rough guess — the real number, including the irregular expenses that only show up twice a year.
- What income is already guaranteed? Social Security, a pension if you have one, and anything else that arrives regardless of market conditions.
- What is the gap? The difference between those two numbers is the part your savings has to cover.
- How much of that gap do you want guaranteed? This is a personal comfort question, not a math question, and reasonable people answer it very differently.
Where annuities fit — and where they do not
An annuity is a contract with an insurance company that can convert a lump sum into income you cannot outlive. That feature solves a real problem for some households, particularly those who want a predictable floor underneath their essential expenses.
They are not right for everyone. Annuities generally involve surrender periods, and money committed to one is not as readily available as money in a savings account. Fees, terms, and features vary a great deal between products. Any guarantee depends on the claims-paying ability of the issuing insurance company.
Sequence-of-returns risk
Two retirees with identical savings and identical average returns can end up in very different places, depending purely on when the poor years arrive. A downturn early in retirement, while withdrawals are happening, does lasting damage that a downturn later in retirement does not. Planning around that risk is a large part of why income strategy differs from accumulation strategy.
Common questions
Do I have to move all my savings into one product?
No, and in most situations that would be a poor idea. A common approach covers essential expenses with guaranteed income and leaves the remainder invested for flexibility and growth.
What happens to the money when I die?
That depends entirely on the contract and the options selected at purchase. Some pay a death benefit to beneficiaries; some do not. It is one of the more important questions to ask before committing, not after.
Can I change my mind?
California provides a free-look period after purchase during which a contract can be returned. Beyond that window, surrender charges may apply. The specifics vary by product and should be in writing before you sign.