Seeking Secure Retirement Income? An Annuity Could Be a Good Fit
If you're worried about outliving your savings (and who isn't?), a lifetime of guaranteed payments could ease your mind.


Locking down a solid retirement income plan in today’s volatile investment market can be challenging.
Some caveats to consider
When thinking about purchasing an annuity, you must take a few things into consideration. For one thing, you must realize that annuities are not FDIC insured. In addition, the quality, costs, coverage and terms of annuities vary by insurance company. So here are a few areas to focus on:
- The ratings of the insurance carriers
- Annual fees
- Length and ammount of surrender charges
- Death benefit
- Choices of payout options
Final thoughts
When you’re thinking about using annuities for income, keep in mind how to best integrate them with your other resources. A great strategy is to determine how much money you’ll need in retirement, purchase one of these products to be sure you have enough, and leave the rest of your money invested to grow.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If the market cooperates, your net worth will continue to increase while you’re retired. And if it doesn’t, you’ll know your annuity, combined with Social Security, will continue to provide steady and reliable income.
Talk to a financial professional about whether this is a good time to buy the type of annuity you’re interested in, but don’t put it off for too long. I recommend buying within at least five years of your planned retirement age.
The guaranteed lifetime income for all parties to an annuity contract should give you the financial confidence that you will have adequate income to ensure a successful retirement.
Kim Franke-Folstad contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Carl W. Zeidler is the founder of Wall Street Financial Group Inc. and the director of financial planning and investment services. He is an insurance professional and an Investment Adviser Representative through Wall Street Financial Group. Wall Street Financial Group is a Registered Investment Adviser in Illinois, Missouri and Tennessee.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
Dave Ramsey Tells Us the Biggest Retirement Mistake You Can Make
The talk-show host, author and podcaster tells Kiplinger what people can do to ensure a happy retirement.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement Accounts
While alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This Today
Don't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With Money
Consider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant Wealth
Cutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.
-
To Unwrap a Budget-Friendly Holiday, Consider These Smart Moves From a Financial Professional
You can avoid a 'holiday hangover' of debt by setting a realistic budget, making a detailed list, considering alternative gifts, starting to save now and more.
-
Treat Home Equity Like Other Investments in Your Retirement Plan: Look at Its Track Record
Homeowners who are considering using home equity in their retirement plan can analyze it like they do their other investments. Here's how.
-
Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert Explains
The process of verification, investigation and cost assessment after a loss is complex and goes beyond simply cutting a check.
-
Two Reasons to Consider Deferred Compensation in the Wake of the OBBB, From a Financial Planner
Deferred compensation plans let you potentially lower your current taxes and help to keep you out of a higher tax bracket. It's important to consider the risks.