Guaranteed Income From Annuities
Guaranteed income from annuities gives retirees confidence that a steady, predictable stream of payments will arrive—no matter how markets behave or how long you live. At Diversified Insurance Brokers, we help clients secure retirement income from 75+ top-rated carriers. Whether you want income right away or prefer to defer for larger future payments, we’ll help you compare options and design the right “personal pension.”
For many people, turning a portion of savings into a personal pension is the foundation of a low-stress retirement—covering essentials with guaranteed cash flow while keeping the rest of your portfolio flexible.
See Your Guaranteed Income Options
Compare payouts from 75+ carriers—single or joint life, level or increasing income.
How Guaranteed-Income Annuities Work
When you purchase a guaranteed-income annuity, you’re exchanging a lump sum (or series of premiums) for a contractually guaranteed payment stream. You can start payments soon or defer to a future date for potentially higher income.
- Immediate Income Annuities (SPIA): Payments start within 12 months—ideal for “retirement paycheck” needs now.
- Deferred Income Annuities (DIA): Lock in future income at a chosen start date to match retirement timing.
- Fixed Indexed Annuities (FIA) with Income Riders: Principal protection, index-linked crediting, plus a guaranteed lifetime withdrawal benefit (GLWB).
Example: Turning Savings into Reliable Income
Illustrative only. A 65-year-old allocates $300,000 to a fixed indexed annuity with an income rider and starts income in year 5. Based on rider terms, annual lifetime income could exceed $25,000 at start—continuing for life, even if the account value later declines. (Actual quotes vary by carrier, state, ages, and features.)
How Payouts Are Determined
- Age & Start Date: Later start generally increases payout rates.
- Single vs. Joint Life: Joint life covers two lifetimes (often slightly lower initial payout).
- Rider & Contract Features: Roll-ups, bonuses, or step-ups can boost the income base.
- State & Carrier: Product availability and guarantees differ by carrier and state.
Key Benefits
- ✅ Lifetime Security: Income for as long as you (or you and a spouse) live.
- ✅ Market Protection: Your payout isn’t cut by market drawdowns.
- ✅ Customization: Level or increasing income; single or joint life; period-certain options.
- ✅ Tax Deferral: Growth inside the contract is tax-deferred until withdrawn.
Who Should Consider This Strategy?
Pre-retirees and retirees who want predictable monthly cash flow—especially those without a pension, or couples seeking spousal income protection—often benefit from guaranteed-income annuities.
Next Steps
- Explore current offerings on our Fixed Annuity Rates page.
- Use the calculator above to model income start dates and riders.
- Get a personalized illustration from multiple A-rated carriers.
Ready to Create Your “Personal Pension”?
We’ll compare quotes from 75+ carriers and tailor a plan to your goals.
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FAQs: Guaranteed Income from Annuities
What exactly is “guaranteed income” from an annuity?
A contractually guaranteed stream of payments from an insurance company, paid for a set period or for life. With lifetime options, income continues as long as you live (or both spouses live for joint contracts).
What’s the difference between SPIA, DIA, and FIA with income rider?
SPIA: Income starts within 12 months. DIA: Income starts later (deferred). FIA + GLWB: Principal protection with index-linked crediting and a guaranteed withdrawal benefit for life.
How are payout amounts calculated?
Based on your age(s) at income start, premium(s), product type, and features (e.g., roll-ups, bonuses, joint vs. single life). Carriers publish payout schedules that we compare for you.
Can income increase over time?
Some contracts offer increasing payments (e.g., CPI-linked or step-ups), or rider features that can raise withdrawals after certain milestones. Others pay level income for predictability.
What happens to my money if I pass away early?
Options include period-certain guarantees, cash refund, or joint-life continuation for a spouse. The choice affects your initial payout—higher guarantees typically reduce initial income.
Are there surrender charges or liquidity limits?
Yes, most accumulation-style contracts have surrender schedules and limited free-withdrawal provisions. SPIAs/DIA income streams are generally irrevocable once payments begin.
How are payments taxed?
Tax treatment depends on account type. Non-qualified annuities have an exclusion ratio; qualified funds (IRA/401(k)) are typically fully taxable when distributed. Consult your tax advisor.
How do I coordinate annuity income with Social Security?
Use guaranteed annuity payments to cover essential expenses, which can let you delay Social Security for a higher benefit. We’ll model scenarios to optimize timing.
Disclosures: Product availability, guarantees, and features vary by carrier and state. Quotes are illustrative and subject to change. This is not tax or legal advice.
