An income rider is an optional benefit added to a fixed or fixed indexed annuity that guarantees you a stream of income for life — no matter how long you live or how markets perform. It’s one of the most powerful tools in retirement income planning.
Unlike immediate annuities that require you to annuitize your contract, most modern income riders let you turn income on and off while keeping your account value intact. Call us at 1-888-972-0024 to discuss your options.
How Income Riders Work
Income riders maintain a separate “income account value” that grows at a guaranteed rollup rate (often 5–8% per year) during the accumulation phase, regardless of actual account performance.
Once you turn on income, you receive a guaranteed percentage of the income base each year for life — even if your actual account value reaches zero.
Most income riders offer a joint option that continues payments to your surviving spouse, making them a strong tool for couples’ retirement planning.
Income riders typically add 0.5–1.25% per year in fees, deducted from your accumulation value. It’s important to compare the cost against the guaranteed benefit.
Unlike traditional annuitization, income riders let you maintain access to your account value for emergencies or legacy planning while still receiving guaranteed income.
Who Should Consider an Income Rider?
Income riders are ideal for retirees or near-retirees who want the security of a guaranteed paycheck they cannot outlive, without locking their money away permanently. They work best as part of a broader income floor strategy alongside Social Security and other guaranteed income sources.
Explore Income Planning Resources
How to use annuities to create a reliable income stream throughout retirement.
Understand all the ways you can receive income from your annuity contract.
How joint income riders protect a surviving spouse’s retirement income.
The most common annuity type paired with income riders — learn how they work together.
We’ll model different income rider scenarios to show you exactly what guaranteed income you could receive — and what it costs.