The Power of Laddering Fixed Annuities for Retirement Income
Learn the Power of Laddering Fixed Annuities for Retirement Income. Fixed annuities are one of the most reliable ways to generate predictable cash flow while preserving principal. They provide guaranteed interest, safety from market volatility, and dependable income options that can be structured to match your retirement timeline. Whether you’re seeking short-term accumulation or long-term income stability, fixed annuities can play a powerful role in building a safer, more flexible retirement plan.
How Fixed Annuities Support Retirement Income
Fixed annuities are insurance contracts designed to grow your savings at a guaranteed rate and provide income you can’t outlive. Unlike variable or market-based investments, they’re not tied to market performance—meaning your balance never declines due to market losses. This makes them ideal for retirees or near-retirees who want peace of mind and consistent returns.
At Diversified Insurance Brokers, we help clients use fixed annuities to complement other income sources like pensions, Social Security, and IRAs. Our advisors compare rates from over 75 top-rated carriers to find the best balance of growth, safety, and liquidity for your needs.
Laddering: A Proven Strategy for Income Flexibility
One of the most effective ways to use fixed annuities is through an annuity ladder. Similar to a CD ladder, this strategy involves purchasing multiple fixed annuities with varying term lengths—often 3, 5, and 7 years. By staggering maturity dates, you maintain steady interest earnings while keeping a portion of your assets accessible every few years.
As each annuity matures, you can choose to reinvest at higher current rates, use the proceeds for income, or rebalance your overall portfolio. This approach helps reduce interest rate risk, provides built-in liquidity, and ensures your money continues working for you at all times. It’s particularly well-suited for conservative investors who value security and predictable returns without locking away all of their funds long-term.
Why Retirees Choose Fixed Annuities
Fixed annuities offer several advantages that make them a core component of many retirement income plans:
- Guaranteed Interest: Earn a predictable rate regardless of market conditions.
- Tax-Deferred Growth: Earnings grow without taxation until you withdraw income.
- Principal Protection: Your original investment is safeguarded from market loss.
- Flexible Payout Options: Choose between lump-sum, systematic withdrawals, or lifetime income.
- Stability in Volatile Markets: Fixed annuities provide steady growth when equities fluctuate.
How Laddering Enhances Income Planning
Laddering fixed annuities gives you more control over when and how your funds become available. It’s especially beneficial during interest rate cycles—when one contract matures, you can reinvest into new annuities at higher prevailing rates. This method creates a rolling schedule of maturities and renewals, balancing both security and opportunity.
For example, a retiree might divide $300,000 into three contracts: $100,000 in a 3-year fixed annuity, $100,000 in a 5-year, and $100,000 in a 7-year. When the first annuity matures, it can be reinvested or used for income needs. Over time, this rotation keeps a portion of your assets liquid while optimizing overall yield.
Building a Customized Strategy
Every retiree’s situation is unique. Some need immediate income, while others want to maximize safe accumulation before turning on payouts. Our advisors evaluate your goals, risk tolerance, and time horizon to design a personalized annuity ladder or income strategy that aligns with your retirement timeline.
At Diversified Insurance Brokers, we help clients design personalized annuity ladders using fixed annuities from over 75 top-rated carriers. Whether your goal is income, preservation, or growth, we’ll build a plan that keeps you in control of your retirement future.
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Who Fixed Annuities Are Best For
Fixed annuities are a great fit for:
- Retirees seeking guaranteed income and capital preservation.
- Investors who want to minimize market exposure.
- Pre-retirees looking to secure higher interest rates while delaying Social Security.
- Conservative savers who prefer steady growth over riskier market returns.
How We Help You Maximize Results
Our team compares hundreds of products across the nation’s leading insurers to identify which annuities offer the best yield, liquidity, and income options for your goals. We don’t represent one carrier—we represent you. With access to independent data and market-leading tools, Diversified Insurance Brokers helps ensure you always get the best rate available at the time you invest.
Contact Us Today:
Ready to explore fixed annuities that offer guaranteed income, principal protection, and long-term growth? Let the expert advisors at Diversified Insurance Brokers help you create a secure retirement strategy.
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FAQs: Fixed Annuities for Retirement Income
What is a fixed annuity?
A fixed annuity is an insurance product that guarantees a set interest rate for a specific term and can provide lifetime income options during retirement.
How does an annuity ladder work?
An annuity ladder involves purchasing multiple fixed annuities with different maturity dates to provide steady returns and liquidity over time.
Are fixed annuities safe?
Yes. Fixed annuities are backed by the financial strength of the issuing insurance company and are designed to protect your principal from market loss.
When should I start using annuities for income?
Many retirees begin income distributions between ages 60 and 70, but timing depends on your income needs and retirement strategy.
Can I access funds early?
Most fixed annuities allow limited penalty-free withdrawals each year—typically up to 10%—while keeping the rest of your funds earning guaranteed interest.
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.
