One of the first questions we ask every client at Troyer Retirement is simple: does your guaranteed income cover your essential expenses? If the answer is no, that’s usually the first gap we work to close — before talking about growth, taxes, or anything else.
Guaranteed income tools, including certain fixed insurance products, are one way retirees help make sure their basic needs are covered no matter what the market is doing. Here’s how to think about whether one fits into your retirement plan.
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Why Guaranteed Income Matters More in Retirement
During your working years, a bad market year is something you can wait out. In retirement, you’re often withdrawing money at the same time the market drops — a combination that can permanently damage a portfolio’s ability to recover. That’s sometimes called sequence-of-returns risk, and it’s one of the biggest threats to a retirement plan that relies entirely on investment withdrawals.
Having a layer of guaranteed income — from Social Security, a pension, or a fixed annuity — could help reduce how much you need to pull from your investments in a down year, giving your portfolio room to recover.
What Guaranteed Income Options Can Offer
Depending on the product and your situation, guaranteed income strategies may help you:
- Cover essential living expenses regardless of market performance
- Reduce the pressure to sell investments during a downturn
- Create predictable income you can budget around
- Potentially provide income for life, so you don’t have to worry about outliving it
It’s important to understand that annuities are insurance products, not securities, and any guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. They aren’t right for every situation, and fees, surrender charges, and holding periods vary by company and product.
How This Fits Your Bigger Picture
A guaranteed income strategy doesn’t exist in a vacuum. We look at how it interacts with:
- Your Social Security claiming strategy, since delaying benefits is itself a form of guaranteed income growth
- Your wealth management approach for the money that isn’t earmarked for guaranteed income
- Your tax-efficient strategy, since the source you draw income from affects how much you keep
- Any IRA or old 401(k) rollover decisions, since rollover funds are sometimes a source for guaranteed income products
The goal isn’t to put all your money into one type of product — it’s to build a layered plan where guaranteed income covers the essentials, and the rest of your portfolio has room to grow.
Frequently Asked Questions
Are annuities the same as investments? No. Annuities are insurance products, not securities or investment advisory products. Any references to guaranteed or lifetime income on our site refer specifically to fixed insurance products.
Do I need to put all my retirement savings into a guaranteed income product? Not necessarily. Most retirees benefit from a blended approach — enough guaranteed income to cover essentials, with the remainder positioned for growth and flexibility.
Are there fees or penalties involved? Annuities may be subject to fees, surrender charges, and holding periods that vary by insurance company and product. It’s important to understand these details before committing to any strategy.
How do I know if this is right for me? It depends on your income needs, other assets, health, and goals. That’s why we build a personalized recommendation rather than a generic one.
Let’s Talk About Your Income Plan
At Troyer Retirement, we help retirees throughout Fort Wayne and the surrounding Indiana, Ohio and Michigan region evaluate whether guaranteed income has a place in their retirement strategy.
Schedule a meeting to walk through your options with our team.
This content is provided for informational purposes only. Troyer Retirement and its representatives do not provide tax or legal advice. Individuals should consult with a qualified professional regarding their personal situation before making financial decisions.
Insurance products are offered through the insurance business Troyer. Troyer Retirement is also an Investment Advisory practice that offers products and services through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. IPW does not offer insurance products. The insurance products offered by Troyer Retirement are not subject to Investment Advisor requirements. Troyer Retirement and IPW are not affiliated companies. 5949376-09/26
