Retiring in 5, 7, or 10 Years? Discover How to Create Income for Life.
You've spent years building your retirement savings. Discover how a portion of your savings could help create predictable lifetime income while another portion stays positioned for potential growth.
- Plan to retire in 5–10 years, or need income starting next year.
- Have savings in a 401(k), 403(b), TSP, IRA, CD, brokerage, or savings account.
- Want predictable income without relying entirely on stock-market performance.
- Want to explore income and growth strategies working together.
Your Savings Have Grown. Now What Will They Pay You?
For years, your focus may have been contributing to retirement accounts, saving money, and growing investments.
But as retirement approaches, the question changes. It's no longer just about how much money you've accumulated. It's about how much income your savings could provide and how long that income could last.
A Paycheck for Life
Explore contractual lifetime income options that can continue for as long as you live, subject to the issuing insurer's guarantees and contract terms.
Market-Loss Protection
Certain fixed indexed insurance strategies protect against direct negative index credits, although fees, withdrawals, and surrender adjustments can affect values.
Potential Continued Growth
Keep a separate portion of savings positioned for potential index-linked interest credits, subject to caps, participation rates, and contract limitations.
One Retirement Balance. Two Different Purposes.
What if part of your retirement savings could provide income for life while another portion remains positioned for potential growth?
Move the sliders and see your illustrative annual income, monthly income, estimated taxes, and long-term growth projections update instantly.
Step 1 — Your Retirement Savings
Step 2 — Divide Your Savings
Choose how much of your retirement savings goes toward illustrative lifetime income and how much stays in the potential growth strategy.
Step 3 — Adjust Your Income and Growth Assumptions
Income begins next year. The default 7.5% is an editable hypothetical annual payout factor applied to the amount allocated to the income strategy. It is not an investment return, a verified carrier quote, or a guaranteed payout. Actual lifetime income depends on age, contract terms, and income elections.
Your Illustrative Retirement Paycheck
Step 4 — Estimate Your Retirement Income Taxes
Retirement income may be taxable depending on the source of the funds and the contract. Use these controls to explore simplified after-tax income estimates.
| Gross Annual Income | $37,500 |
| Illustrative Taxable Income | $37,500 |
| Estimated Annual Taxes | $8,250 |
| Estimated Net Annual Income | $29,250 |
| Estimated Net Monthly Income | $2,438 |
Tax calculations are simplified illustrations, not estimates of actual federal or state tax liability. They do not calculate tax brackets, deductions, Social Security taxation, Medicare-related effects, or other income. Qualified Roth tax treatment must be verified.
Step 5 — Explore Your Long-Term Projections
Compare cumulative income payments with the hypothetical value of the separate growth allocation.
Potential Growth of Your Separate Allocation
This example uses an illustrative 0% annual index-crediting floor and adjustable annual cap, applying a repeated historical S&P 500 price-return sequence for longer projections. It assumes no withdrawals, no fees, and unchanged crediting terms. It is not a forecast or insurance carrier illustration.
Year-by-Year Illustration
| Year | Cumulative Gross Income | Growth Account |
|---|
Important: Income payments received over time are not a remaining account balance. The income contract's remaining value or death benefit is not modeled. Do not add cumulative income to the growth account and treat the total as remaining retirement wealth.
Where Can Your Retirement Income Money Come From?
You may already have savings that could be considered for a retirement income strategy. Eligibility, transfer rules, and tax consequences vary.
401(k) Plans
Explore eligible rollover options for previous employer plans or qualifying distributions from current plans.
403(b) Plans
Learn about potential retirement income options for eligible 403(b) balances.
Thrift Savings Plan
Explore income strategies for eligible TSP transfers and distributions.
Traditional and Roth IRAs
Review potential IRA transfer options while considering pretax and Roth tax rules.
Certificates of Deposit
Explore whether part of your maturing CD savings could support a longer-term retirement income strategy.
Brokerage and Savings Accounts
Consider eligible nonretirement funds while reviewing liquidity needs, potential investment sales, and taxes.
Not every account can be transferred directly into an annuity. Certain transactions may require liquidation or distributions and could have tax consequences.
Retiring in 5, 7, or 10 Years?
5 Years Until Retirement
Review how much monthly income you'll need, how much savings should remain accessible, and whether lifetime income guarantees may fit your goals.
7 Years Until Retirement
Explore income-start dates, accumulation options, and potential benefits while preparing for retirement.
10 Years Until Retirement
Develop a strategy for transitioning from saving money to generating retirement income.
What If the Market Drops Right Before You Retire?
Market declines near retirement can create challenges, especially when you're withdrawing money to pay everyday expenses.
Certain insurance-based retirement strategies offer contractual income guarantees that do not depend directly on stock-market performance.
The goal isn't necessarily to replace every investment you own. It's to explore whether a lifetime income component could complement your existing retirement plan.
Potential Advantages
- Lifetime income options
- Protection from direct negative index credits in certain contracts
- Potential index-linked interest credits
- Optional joint-income benefits
- Possible enhanced income benefits for qualifying events
Important Trade-Offs
- Surrender periods and limited liquidity
- Potential rider charges
- Caps, participation rates, and spreads
- Inflation may reduce purchasing power
- Potential tax consequences
- Guarantees depend on the issuing insurer
How Your Retirement Income Review Works
1. Request a Consultation
Tell us when you plan to retire and what retirement accounts you have.
2. Explore Your Options
A licensed professional can review income needs, liquidity, eligibility, and available strategies.
3. Make an Informed Decision
Compare illustrations, guarantees, charges, and alternatives before transferring any funds.
Frequently Asked Retirement Income Questions
Can I turn my 401(k) into lifetime income?
Eligible funds may be rolled into an appropriate IRA annuity, subject to plan and tax rules. Actual guarantees depend on the insurance contract selected.
What does a 7.5% lifetime income rate mean?
In this calculator, 7.5% is a hypothetical annual payout factor applied to the income allocation. It is not a 7.5% investment return or a verified carrier quote.
Can I receive income while keeping money growing?
Potentially. A retirement strategy can allocate money among different products and accounts for income and accumulation. Suitability depends on your circumstances.
Are lifetime income payments taxable?
Payments funded by pretax retirement money are generally taxable as ordinary income. Nonqualified annuities and Roth accounts may receive different tax treatment.
What happens if the market declines?
Certain fixed indexed annuities offer a 0% index-crediting floor for specified strategies. However, charges, withdrawals, and surrender adjustments may still reduce contract values.
Can my spouse continue receiving income?
Some contracts offer joint lifetime income options. Survivor benefits and payments depend on the contract selected.
Can I access my money after purchasing an annuity?
Access depends on the contract. Withdrawals may be limited or subject to surrender charges and may reduce future income benefits.
Are annuities FDIC-insured?
No. Annuities are insurance contracts, not bank deposits. Guarantees depend on the issuing insurer's claims-paying ability.
What happens to the money when I die?
Remaining value and death benefits depend on the contract and income option. Some offer beneficiary benefits, while others may end payments at death.
You Saved for Retirement. Now Explore How Your Savings Could Pay You for Life.
Whether retirement is next year or 5–10 years away, explore how lifetime income and potential growth could work together in your retirement strategy.
Request Your Free Retirement Income ConsultationNo obligation. Education first. Solutions second.
Explore More Retirement Planning Resources
Important Information and Disclosures
This page provides general educational information, not individualized financial, investment, legal, or tax advice.
Lifetime income and index-linked interest strategies described here may involve fixed indexed annuities and optional income riders issued by insurance companies.
Annuities are long-term insurance products and are not FDIC-insured. Guarantees depend on the issuing insurer's financial strength and claims-paying ability.
Index-linked interest is not a direct investment in the S&P 500. Crediting methods may include caps, participation rates, spreads, and other limitations. These terms may change.
A 0% index-crediting floor does not prevent reductions in surrender value caused by charges, withdrawals, or adjustments.
The 7.5% illustrative payout factor, tax estimates, historical return sequence, and growth projections are hypothetical. They do not represent actual carrier illustrations or guaranteed results.
Consult qualified financial, insurance, and tax professionals before making retirement rollover or annuity decisions.