One of the most powerful uses of an annuity is generating income you cannot outlive. With a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider, your annuity can pay you a set income every year for life — even if your account value drops to zero.
How Lifetime Income Riders Work
You accumulate an “income base” — typically growing at a guaranteed rate (e.g., 6–8% per year) regardless of market performance. At retirement, you activate the rider and receive a percentage of that income base as annual income for life.
GLWB vs. Annuitization
Unlike traditional annuitization (which permanently surrenders your principal to the insurer), a GLWB allows you to keep control of your contract value while still receiving guaranteed income. Your heirs can inherit any remaining contract value. Fixed indexed annuities are the most common vehicle for income riders due to their longer contract structures and index-linked growth potential.
Is a Retirement Income Annuity Right for You?
- You want guaranteed income to cover essential expenses in retirement
- You’re concerned about outliving your savings
- You want to reduce reliance on Social Security alone
If you’re evaluating how to fund your income floor, also consider a Multi-Year Guaranteed Annuity (MYGA) for the accumulation phase before activating income.
Call us at 1-888-972-0024 to run a personalized income illustration from top carriers.