From saving to spending: Using annuity solutions to address retirement income complexity for clients

Retirement today is no longer a single event, but a multi-decade transition driven by longer lifespans, evolving work patterns, and the decline of traditional pensions. This shift is changing clients’ mindsets from a focus on how much they’ve saved to how confidently they can spend in retirement. 

Americans increasingly expect to live well into their late 80s or beyond, yet many are feeling off-track when it comes to the financial readiness required. More than one in three individuals worry their retirement savings won’t last as long as needed, and a similar share cites concerns about not having a guaranteed source of income in retirement. That tension between longevity expectations and income certainty is influencing not just retirement planning conversations, but how strategies and solutions themselves, including annuities, are evolving. 

As explored in Income by Design, a recent publication from Guardian Wealth Advanced Markets, annuities are increasingly being used as precision tools within income strategies to address clients’ shifting goals. Here’s how this evolution is unfolding and what it means for helping clients prepare to enjoy retirement with confidence. 

Income that starts and ends on clients’ terms 

One of the most notable benefits of annuities is that they can be set up to match how retirement really happens. Many products let advisors choose when income starts and how long it lasts based on a client’s needs, such as covering the years before Social Security begins, adding income during part-time work in retirement, or providing more protection later in life. 

This flexibility reflects how retirement actually progresses, especially for the many individuals who expect to work in some capacity during retirement, often with income that tapers gradually rather than ending abruptly. Annuities structured in layers can help address those transitions, providing predictability when earned income declines and reinforcing confidence that wealth can support spending over time, even as time horizons extend and healthcare costs rise. 

Managing risk where it matters most 

Alongside flexibility, many annuities are increasingly being designed to address specific retirement income risks. Longevity risk remains important, but products are also being used to manage market volatility, sequence‑of‑returns risk, unpredictable earned income, and the behavioral risk of underspending driven by uncertainty. 

Financial stress remains widespread, and only about one‑third of Americans say they are good at managing their finances over the long term. When clients lack confidence that income will last, they tend to pull back on spending, even when assets are sufficient.  

Using guaranteed income to cover essential expenses can help clients worry less about market swings and give them more confidence to use the rest of their money as planned. Importantly, modern product designs allow this risk management to be targeted, addressing specific vulnerabilities without sacrificing liquidity or flexibility across the entire portfolio. 

Starting the retirement income conversation 

As annuities become more tailored and flexible, the conversation with clients increasingly starts with clarity around outcomes rather than product categories. The most effective discussions focus less on labels and more on how income is meant to function: the role it can play, how predictable it should be, and which risks matter most to the client’s retirement.  

For example, a client approaching retirement may want to ensure essential expenses like housing and healthcare are covered with reliable income, while another already in retirement may be more focused on supplementing part-time earnings that may fluctuate year to year. 

Start by asking clients questions such as: 

• Which retirement expenses are non-negotiable? 
• How do you expect your income to change in the early years of retirement? 
• How important is flexibility versus predictability as retirement progresses? 
• How do you want retirement income to support both your lifestyle and long‑term confidence? 

Together, these questions can provide key insights into how annuities can be structured to support clients’ specific retirement goals. 

Helping clients live confidently in retirement 

Retirement portfolios are no longer defined solely by accumulation targets or withdrawal rates. As lifespans lengthen alongside evolving work and spending patterns, products like annuities can offer control over income timing, targeted risk management, and clear integration into the overall retirement picture. 

When annuity solutions are aligned with defined income needs and risks, they can work alongside other protection and investment products as part of a holistic plan, transforming retirement income from a source of uncertainty into a foundation for clients’ long-term financial confidence. 

Starting these conversations early can help clients translate their goals into a more dependable income strategy for the future. 

Disclaimer

Fixed and Registered Index Linked Annuities (RILA) are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC). All guarantees are backed exclusively by the strength and claims-paying ability of GIAC. Registered Index Linked Annuities are issued by GIAC, a Delaware corporation, and distributed by Park Avenue Securities LLC (PAS). Both GIAC and PAS are wholly owned subsidiaries of The Guardian Life Insurance Company of America, 10 Hudson Yards, New York, NY 10001.

8938975.1 (05/2028)