Imagine retiring at 65 and living comfortably to 95—or beyond. Will your savings last? For most retirees, longevity risk—the risk of outliving your money—is the single biggest financial threat to a secure retirement.
The Retirement Income Crisis
- 65% of retirees fear running out of money more than death itself
- A 65-year-old couple has a 50% chance one spouse lives to 90+
- Traditional pensions are disappearing—only 15% of workers have one
- Social Security replaces only ~40% of pre-retirement income
What is Longevity Risk?
Longevity risk is the financial danger of living longer than your savings can support. When you retire with $500,000, you face an impossible question: How long will it need to last? 20 years? 30 years? 40 years?
If you withdraw too much, you risk running out. If you withdraw too little, you sacrifice your quality of life. This is the retirement income dilemma that keeps millions of Americans awake at night.
The Solution: Guaranteed Lifetime Income
Annuities with lifetime income riders solve longevity risk by contractually guaranteeing you'll receive income for as long as you live—even if you live to 100, 110, or beyond. The insurance company assumes all longevity risk, not you.
How Lifetime Income Works
You Invest
Make a lump-sum payment into an annuity with a lifetime income rider
Funds Grow
Your account value grows tax-deferred during the accumulation phase
Income for Life
Activate income when ready—guaranteed monthly payments for life
Real Example: $400,000 Investment at Age 65
Let's look at a realistic scenario:
Client Profile
- Age: 65
- Investment: $400,000
- Product: Fixed Indexed Annuity with Lifetime Income Rider
- Income Start: Immediate
Guaranteed Outcome
What this means: Even if this client lives to 100 (35 years), they'll receive $1,176,000 in total income—nearly 3x their original investment. If they live to 110, they'll receive $1,512,000. The insurance company guarantees these payments regardless of market performance or longevity.
Want to See Your Numbers?
Get a personalized income projection based on your age and investment amount
Calculate My Lifetime IncomeTypes of Lifetime Income Annuities
1. Single Premium Immediate Annuities (SPIAs)
Best for: Immediate income needs
Pay a lump sum, receive income within 30-90 days. Offers the highest payout rates because income starts immediately. Irreversible once activated.
2. Deferred Income Annuities (DIAs)
Best for: Planning ahead (5-20 years out)
Invest today, income starts at a future date (e.g., age 75). Longer deferral = higher payouts. Provides certainty for later-life income.
3. Fixed Indexed Annuities with Income Riders
Best for: Flexibility + growth potential
Account value grows with market-linked interest, lifetime income rider provides guaranteed payouts. Turn income on/off as needed. Most popular option for flexibility.
Key Considerations Before Committing
When Lifetime Income Makes Sense
- • You need guaranteed income to cover essential expenses
- • You're concerned about outliving your savings
- • You want to remove longevity risk from your plan
- • You can commit funds for 7-10+ years
- • You have other liquid assets for emergencies
When to Reconsider
- • You need full liquidity (emergency funds)
- • You're in poor health (may not maximize value)
- • You have no beneficiaries and want legacy
- • You're under age 55 (too early for most)
- • You can't commit funds during surrender period
Ready to Secure Your Retirement Income?
Atlas Annuities compares lifetime income options from 50+ carriers to find you the best guaranteed payout rates available.
Disclosure: Guaranteed lifetime income is subject to the claims-paying ability of the issuing insurance carrier. Payouts vary based on age, gender, investment amount, and product selected. Atlas Annuities provides personalized recommendations based on individual suitability requirements. This article is for educational purposes only and does not constitute financial advice.