Could Now be the Right Time to Consider an Annuity?
The following educational materials are intended for informational purposes only and are not intended to constitute personalized financial advice.
Case study: how retirement planning has changed and why annuities make sense today
Meet Linda. She’s 62, and she’s finalizing her plans so that she can retire this year.
If Linda were the same age ten years ago, her retirement plan would have looked very different. In 2016, inflation was lower and more predictable, housing and healthcare costs were significantly lower, and calmer markets shaped how retirees planned for the years ahead.
Today, soaring consumer prices, ballooning healthcare expenses, and greater market uncertainty require a fundamentally different approach to retirement planning.
2016: A plan built on confidence
Back then, Linda’s plan would’ve been based on a few assumptions that, at the time, felt reliable:
Balanced portfolios provided reliable income — the widely used 60/40 stock/bond mix could be relied upon to smooth volatility.
Low but stable bond yields provided “safe” income with the 10-year Treasury hovering around 1.5%-2.5%
Inflation wasn’t a major concern — rates remained low by historical standards.
Longevity risk was less prominent in retirement conversations — the dominant focus was on market returns, portfolio growth, and accumulation strategies. Funding 30-35 year retirements was not a focal point.
Cash flow came from withdrawals — systematic distributions from portfolios were considered reliable.
2026: A very different reality
Today, the retirement landscape has shifted:
Markets are volatile: sharp and wide swings make relying solely on investments risky.
Fixed income is uncertain — yields are higher, but future rates are unpredictable.
Inflation matters — even moderate spikes reduce purchasing power.
People are living longer than before: retirees may live 30+ years in retirement.
Retirement costs are rising: healthcare, housing, and lifestyle expenses are higher than ever.
Linda’s old strategy would not fully protect her from these risks today.
The new approach: Adding more stability with annuities
Linda and her financial professional can use annuities, as part of a holistic approach, to create a stable foundation for her retirement.
3, 5, or 7 year Multi Year Guarantee Annuities: to lock in a guaranteed rate for a specificed period of years, renewal period options, a defined maturity date, and tax-deferred growth — insulated from equity market swings.
Guaranteed income: to help cover essential expenses, letting the rest of her portfolio grow without fear of equity market downturns.
Why it matters: Ten years ago, balanced strategies mattered, but many retirees were focused primarily on growth. Today, with longer retirements and a higher cost of living, adding stability can provide Linda with greater confidence and flexibility.
The modern retirement takeaway
Linda’s case reflects what many retirees face:
✓ Markets are turbulent
✓ Inflation is unpredictable
✓ Retirement timelines are longer
✓ Portfolio-only income strategies feel riskier
Certain annuities can provide guaranteed growth and income that doesn’t depend on market conditions, giving retirees more control, confidence, and stability.
Talk to a professional.
Consider speaking with a financial professional who can help you better understand if an annuity could make sense to meet your retirement planning goals.