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Retirement Income

There is probably no more important financial goal for clients than meeting their retirement income needs. Today’s low-cost, Commission-Free annuities can enhance your clients’ retirement income in ways traditional strategies often can’t. If you’re solving for retirement income, annuities deserve a fresh look.

Why your clients want (and need) right-priced annuities
Predictable Income stream

Guaranteed lifetime income can be delivered from many annuity types and can be used to cover expenses in retirement and mitigate longevity risk.

Protection against market volatility

 Funding retirement income through an annuity gives equity positions a longer investment horizon, mitigating sequence of returns risk.

Security and peace of mind

The guaranteed income stream annuities can provide brings clients added psychological benefits like increased happiness and peace of mind.

Tax efficient strategies

Some annuities, in addition to providing guaranteed lifetime income, offer mechanisms to disperse that income tax efficiently.

Retirement Income Products

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Type Summary
Registered Index Linked Annuity

Registered Index Linked Annuities (also known as Structured Variable Annuities or Buffer Annuities) are tax-deferred insurance vehicles that provide upside potential with a defined degree of downside protection. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the...

Solves for Principal Protection, Retirement Income
Deferred Income Annuity

A deferred income annuity is a contract funded with a lump-sum payment (premium) in exchange for guaranteed income payments at a future date. Also known as a longevity annuity because of qualified longevity annuity contract (QLAC) eligibility, a deferred income annuity can serve as a pension-like income stream for investors without a defined benefit plan through their...

Solves for Retirement Income
Fixed Index Annuity

Fixed index annuities are tax-deferred insurance products that provide market upside, while protecting principal from market losses. Assets are allocated into indices that are designed to replicate market performance. These fixed index annuity indices are typically accompanied with cap rates, spreads, or participation rates.

Solves for Retirement Income, Principal Protection, Annuity Rescue+
Multi-Year Guaranteed Annuity

Multi-year guaranteed annuities (MYGAs) offer a tax-deferred guaranteed rate of return for the duration of the product. These simple, short-duration annuities are often used by advisors for fixed income allocations.

Solves for Retirement Income, Principal Protection, Tax Deferral
Single Premium Immediate Annuity

A single premium immediate annuity is a contract funded with a single lump-sum payment (premium) in exchange for guaranteed income payments. Designed to supplement retirement income, a single premium immediate annuity insures the purchaser against outliving their money or exhausting it within a certain timeframe. A single premium immediate annuity...

Solves for Retirement Income
Variable Annuity

Variable annuities are tax-deferred insurance contracts with an underlying value that fluctuates based on the performance of the underlying investments. These products often offer insurance benefits such as guaranteed income or a death benefit. The ability to annuitize assets into a guaranteed lifetime income stream is the fundamental feature that qualifies a...

Solves for Tax Deferral, Annuity Rescue+, Legacy Planning, Retirement Income, Wealth Accumulation
Fixed Annuity

Fixed annuities are simplified products, offering a tax-deferred guaranteed fixed rate of return for a specified period.

Solves for Retirement Income, Principal Protection, Tax Deferral
Commission-Free Annuities are a Great Way to Deliver Packaged Income

DPL members are turning to fixed indexed annuities to generate guaranteed income for their clients in retirement. Commission-Free annuities are an efficient way to deliver a retirement paycheck month after month, and provide clients with the peace of mind that they won't outlive their money.

Why DPL is a Fan of Annuities - Reason #2

DPL’s David Lau talks about the reasons why DPL believes that annuities are an important part of a client’s financial plan.

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Jun 25, 2019
The 2019 RIA Retirement Planning Benchmarking Survey provides insight into advisors’ current retirement planning practices...

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Feb 04, 2020
Wade Pfau PhD, CFA, RICP and DPL Founder and CEO, David Lau explore some of...

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Jan 24, 2022
DPL's Tim Rembowski shares solutions that advisors are using to help solve for the ongoing...

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Jun 05, 2022
Founder and CEO of DPL Financial Partners, David Lau, explains why true fiduciaries should consider...

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Jan 16, 2024
Annuities deliver guaranteed retirement income, but misconceptions hold some people back. 1 Many people who...

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Feb 03, 2020
DPL Founder and CEO, David Lau and Wade Pfau PhD, CFA, RICP, discuss the best...

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Dec 07, 2021
Dependent on your client's specific goals and time horizon, some products may provide better payouts...
Willie Jones

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Jan 14, 2020
Willie Jones explains how Commission-Free annuities and insurance can deliver greater value to an advisory...

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Jun 01, 2022
DPL’s Lead Consultant, Nicole Benz, shares how financial advisors can utilize DPL’s Guaranteed Income Analysis...
Guarantees can also provide peace of mind and a license to spend, which leads to a less stressful, more enjoyable retirement experience.
WADE PFAU
PROFESSOR OF RETIREMENT INCOME AT THE AMERICAN COLLEGE
EVALUATING INVESTMENTS VS. INSURANCE IN RETIREMENT
Increases in guaranteed income result in higher life satisfaction even among those who have more than enough wealth in retirement.
MICHAEL FINKE
CHIEF ACADEMIC OFFICER OF THE AMERICAN COLLEGE
TIME FOR RIAS TO RETHINK INSURANCE
Annuities belong in the retirement income portfolio, and more so as you age.
MOSHE MILEVSKY
PROFESSOR OF FINANCE AT THE SCHULICH SCHOOL OF BUSINESS AT YORK UNIVERSITY
ANNUITY ALLOCATION IN RETIREMENT INCOME PORTFOLIOS

Why would you use a variable annuity (VA) for retirement income?

While income payout rates are typically lower in VAs than other products, variable annuities provide the most potential upside. For clients with longer investment horizons, the value of tax deferral can help accumulation, potentially providing a larger balance to drive the income payments when income features are elected.

Why would you use a fixed index annuity (FIA) for retirement income?

The principal protection aspect of fixed index annuities (FIAs) make these products a strong choice for clients nearing or in retirement to help mitigate sequence of returns risk. FIAs also can have strong payout options that often increase when clients delay taking income payouts. DPL recommends advisors consider an allocation to FIAs as part of a client’s fixed income portfolio as they near retirement.

Why is guaranteed lifetime income important?

Lifetime income is important to clients for many reasons, both financial and psychological. Lifetime income guarantees through annuities often can fund retirement income needs more efficiently than fixed income, while helping mitigate sequence of return risk and longevity risks. Guaranteed income also provides psychological benefits to clients by providing income certainty even when markets may not be.

What product types can provide guaranteed lifetime income?

Most advisors think of single premium immediate annuities (SPIAs) when they think about lifetime income, but other types of annuities also can be used. Fixed Index, Variable and Deferred Income annuities can all provide guaranteed lifetime income. Based on client objectives, your DPL Consultant can help you find the right product type to meet their needs.

Are all SPIAs illiquid?

Yes, once assets are invested into a single premium immediate annuity (SPIA), they have been annuitized with the insurance carrier and turned into an income stream. For clients who fear “losing” to the insurance carrier, utilizing a "period certain" feature can ensure heirs receive assets in the event the client passes away earlier than expected.