Annuities: Turning Retirement Savings into Lasting Income
Annuities are one of the most powerful, yet often overlooked, tools in a retirement planning strategy. At Dalton Insurance, we help individuals and families understand how annuities work, why they matter, and how they can provide a guaranteed income stream for life.
What Is an Annuity?
An annuity is a contract between you and an insurance company. In exchange for a lump-sum payment or series of payments, the insurer promises to provide regular income, either immediately or in the future.
Annuities are especially helpful for those who want to:
- Create a steady stream of income in retirement
- Protect against outliving their savings
- Reduce exposure to market volatility
- Turn a portion of their assets into a personal pension
Think of an annuity as a way to convert your retirement savings into predictable, long-term income you can rely on.
Why Are Annuities Important?
For many retirees, the biggest fear isn’t investment loss, it’s running out of money. Annuities address that fear head-on by offering:
- Income for life, regardless of how long you live
- Predictable monthly payments to cover expenses
- Protection from market downturns (in certain types)
- Options that align with your risk tolerance and goals
Whether you’re planning for essential living costs or looking to fund travel, hobbies, or healthcare, annuities can provide confidence and control during your retirement years.
Types of Annuities
There’s no one-size-fits-all annuity. The right solution depends on your goals, timeline, and comfort with market risk. Below are the three most common types of annuities:
Fixed Annuities
These offer guaranteed payments and a fixed interest rate over time.
- Stable and predictable
- No exposure to market risk
- Ideal for conservative investors seeking income security
Variable Annuities
These allow you to invest in a portfolio of mutual funds.
- Payment amounts vary based on investment performance
- Offers growth potential, but with more market risk
- Best for those seeking long-term investment upside and comfortable with fluctuation
Indexed Annuities
These link your returns to a market index (e.g., the S&P 500), while protecting your principal.
- Balance between growth opportunity and downside protection
- May offer higher earnings than fixed annuities
- Suited for individuals who want moderate risk with guarantees
Is an Annuity Right for You?
Annuities aren’t for everyone, but they can be a valuable part of a diversified retirement plan. Whether you’re concerned about longevity risk, market volatility, or just want to simplify your retirement income, an annuity might be worth exploring.
At Dalton Insurance, we take the time to understand your financial picture and provide honest, personalized guidance. We’re not tied to one product or provider, we help you find what’s right for you.
Schedule Your Annuity Consultation
Let’s discuss whether an annuity fits into your long-term retirement strategy.
Call or text (334) 489-3624 or book a consultation with a licensed advisor at Dalton Insurance to explore your options.