Guaranteed Income at Age 65
Over 100 Carriers to Quote From. Here are a few of them!
Guaranteed Income at Age 65 is a cornerstone retirement planning strategy. With traditional pensions fading away, retirees increasingly turn to annuities to create their own reliable paycheck for life. By locking in guaranteed payout rates, you can ensure income security no matter how long you live.
Guaranteed Income Example at Age 65
Let’s assume you’ve saved $1,000,000 by age 65 and choose a fixed annuity offering an 8.2% lifetime payout rate. Here’s what your guaranteed income would be:
Retirement Balance: $1,000,000
Payout Rate: 8.2%
Annual Guaranteed Income: $82,000 for life
This guaranteed paycheck continues for life, regardless of stock market performance. Many annuities also provide joint options so your spouse continues to receive income if you pass away first.
Why Age 65 is a Critical Turning Point
- Higher Payouts: Waiting until 65 increases your guaranteed income compared to starting earlier.
- Peace of Mind: Know exactly how much income will arrive every year.
- Flexibility: Options for spousal continuation and beneficiary protection add security.
Curious how payout rates compare across ages? Visit our fixed annuity rates page for today’s options.
Smart retirees often combine guaranteed annuity income with Social Security planning to maximize lifetime cash flow. This strategy allows you to delay Social Security for higher future benefits while covering expenses with annuity income.
Discover Your Guaranteed Income
Every retirement plan is different. Our advisors can calculate exactly how much guaranteed income you can receive at 65—or any age—based on your savings.
📞 Call us at 800-533-5969
📅 Schedule a free consultation
Or visit our Contact Page for more options.
FAQs: Guaranteed Income at Age 65
What does guaranteed income at age 65 mean?
It refers to converting part or all of your retirement savings into a financial product (such as an annuity or income rider) that begins making reliable payments starting at age 65, often for life.
How much income can I get from a $100,000 annuity at age 65?
The actual income depends on the annuity type, payout options (single/joint life), and features like bonuses or riders. A fixed indexed annuity with an income rider often yields a higher lifetime income than basic fixed annuity rates.
What types of annuities are commonly used for income at 65?
Common types include: immediate income annuities, deferred income annuities with payout starting at 65, fixed annuities, and fixed indexed annuities with income riders. Each offers different trade-offs in terms of growth, guarantees, and liquidity.
What are the trade-offs of waiting until 65 vs. earlier?
Waiting until 65 often means higher payout rates because you have fewer years until withdrawals begin. But waiting means foregoing income earlier. Also, interest rate environment and inflation affect your purchasing power.
Can the payments increase with inflation?
Some annuities or riders offer inflation adjustments or “cost of living” features, but many do not. It’s important to check if the product includes inflation indexing or increasing payment options.
What happens if I die early or switch my plan?
Depending on your contract, there may be options for guaranteed periods (e.g. payments for a minimum number of years) or joint life payouts (to a spouse). Some products also allow a death benefit for beneficiaries.
How does this income interact with Social Security or pension income?
Guaranteed annuity income can be used to cover essential basic expenses, letting you delay Social Security for higher benefit or preserve other income sources. It helps diversify income risk in retirement. Always coordinate with your financial planner or advisor.
Are there penalties or restrictions for early withdrawals?
Yes—many annuities have surrender charges for early withdrawal, and some features might reduce benefits or bonuses if you withdraw early. Liquidity options vary by provider and state.
Disclosures: The estimates depend on contract terms, payout options, and current interest and crediting rates. Not all annuities include riders or income features. Speak with a licensed advisor for exact quotes.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
