Market risk and volatility are nothing new. But when you’re approaching retirement—or already there—market swings can feel more significant. But remember that retirement planning is less about short-term performance and more about generating long-term income that can last. That’s becoming a bigger challenge as retirees are living longer.
Longevity changes the retirement conversation
One of the biggest concerns you may face in retirement is outliving your savings. For someone retiring in their 60s, their assets may need to last 30 years or more. That extended timeline means you need to plan not only for asset growth, but also for sustainability. Over time, inflation, health care costs and market volatility can chip away at your purchasing power. Without a clear strategy designed for longevity, even well-prepared retirees may be concerned that their savings won’t truly go the distance. That’s where annuities can play an important role.
How annuities support retirement income
Annuities are designed to help address two retirement concerns: income certainty and longevity risk. When you purchase an annuity, you can convert a portion of your retirement savings into a guaranteed income stream. This creates an income foundation that’s not directly tied to daily market movements. The income can help cover living expenses such as housing, utilities and health care, easing the pressure to react to market changes.
Planning for the long road ahead with a fixed indexed annuity
Fixed indexed annuities (FIAs) are frequently chosen by those looking for a balance between protection and growth potential. Features may vary by product, but FIAs generally offer:
- Lifetime income options to help protect against the risk of outliving savings.
- Growth potential tied to market indexes.
- Protection from market losses, since values are not directly invested in the market.
- Flexibility, including choices around income timing and access to funds.
Over the course of your retirement, this combination may help you maintain purchasing power and transform uncertainty into certainty.
Retirement today is not a single chapter—it’s a journey. Planning for longevity means thinking beyond today’s headlines and mapping out a plan designed to last. Annuities, including fixed indexed annuities, can be effective tools in your long-term planning. When used thoughtfully and with professional guidance, they can help provide income stability, manage market risk and support a more confident retirement.
Additional reading:
Unlock savings stability: Fixed indexed annuities as a savvy retirement tool
