One of the biggest obstacles facing retirees and pre-retirees today is how to avoid outliving income. The majority of Americans today are at risk of being unable to maintain their pre-retirement standard of living in retirement. Most will be forced to find ways to bridge the gap between what Social Security and pensions provide.

  • Instead of being concerned with the value of your savings, you should be more concerned with the income that account provides.
  • Income maintains your quality of life so you may live in retirement as you did when you were working. You need to have the income so you can travel, see your grandkids and live whatever retirement dreams you may have.

Income Riders Explained

A fixed income annuity can come with choices of various riders for a fee. Income riders have turned out to be a positive benefit to help supplement fixed deferred annuities. Associates of the National Association for Fixed Annuities (NAFA) account that over half of the people who buy fixed deferred annuities will additionally choose to add an income rider. Moreover, income riders are recognized as reliable lifetime income benefits.

Income riders can offer the assurance of income for life (similar to what annuitization provides), but devoid of having to sacrifice access to your remaining premium. An income rider on a fixed annuity can give a retiree the opportunity to build a sound retirement income.