Annuity Positioning Strategies
Each client’s vision for retirement is as unique as their journey. By understanding their individual aspirations—whether it’s securing guaranteed income, accumulating wealth for future endeavors, or protecting their financial legacy—you can position annuity solutions that align with their dreams.
Annuity Positioning Strategies
Each client’s vision for retirement is as unique as their journey. By understanding their individual aspirations—whether it’s securing guaranteed income, accumulating wealth for future endeavors, or protecting their financial legacy—you can position annuity solutions that align with their dreams.
Securing Guaranteed Income:
Annuities as “The New Pension Plan”
With traditional defined benefit pension plans becoming less common, many retirees are searching for ways to ensure a steady income throughout retirement. Annuities offer an alternative solution for future retirees that provides a reliable income stream for life.
Guaranteed Lifetime Income:
Research shows that 88% of middle-market Americans feel more secure in retirement with guaranteed lifetime income.1
Annuities provide this assurance, helping clients alleviate concerns about outliving their savings.
Building an Income Floor
“A retirement income floor helps increase stability and financial confidence — especially for the middle and working class.²”
This is especially true for consumers today who need to withstand inflation, market volatility, and longer life spans. Annuities complement Social Security and other income sources, ensuring that basic living costs are covered no matter what happens in the market.
Assessing Retirement Income Needs
Calculating how much income is needed can be complex, especially with people living longer than ever. By allocating a portion of a client’s portfolio to an annuity with an income rider, financial professionals can help cover essential expenses and provide greater peace of mind.
Provide a Protected Income Floor with WealthChoice
The WealthChoice Fixed Indexed Annuity (FIA), combined with an optional Guaranteed Living Benefit Rider (GLBR)* can help build a reliable retirement income floor. The GLBR provides a guaranteed* income stream, even after the accumulation value is depleted. It also includes features that meet multiple needs of those nearing and in retirement.
Continuous Income for Individuals or Couples:
WealthChoice ensures steady income for life, even if the account value is reduced to zero. With a joint payout option contract owner passes away, the surviving spouse continues to receive the exact same amount in a dependable “paycheck,” allowing them to maintain their lifestyle without drastic financial changes.
Combat Inflation with Increasing Income
As inflation erodes purchasing power, fixed income streams may not suffice. WealthChoice’s GLBR offers a 3% annual income increase to help clients keep pace with rising costs.
Flexible Access on Client’s Terms
Retirement needs can be unpredictable, and clients benefit from the flexibility to start, stop, or defer income based on their situation. WealthChoice provides options to start payouts after 30 days or defer to boost future income.
Choose a product that fits your clients' income needs
Explore how our annuities can help your clients grow and protect their retirement savings. Not all products may be available for your organization. For details on available options, please contact your IMO or the Guaranty Income Life sales desk at 800-535-8110.
Opportunities to Build and Maintain Wealth
For many clients, growing and preserving wealth remains a top priority to and through retirement. Annuities provide growth potential with built-in protection, making them valuable assets in a diversified retirement strategy.
By working with a company that offers competitive rates and a variety of indexing options, you help give clients more opportunities to build and maintain wealth — regardless of market conditions.
Lock in Competitive Rates While They Last:
Over the past few years, higher interest rates have created favorable conditions for annuity sales, offering clients attractive earning potential. Although rates will continue to fluctuate in the future, there’s never been a better time to take advantage of the growth opportunities annuities can offer.
Renewal Rate Integrity for Long-Term Growth:
Working with a company that has renewal rate integrity ensures that clients don’t just benefit from competitive initial rates but also receive fair and consistent renewal rates to help maintain strong growth potential for years to come.
Harness the Power of Index Options:
In addition to potentially favorable rates, annuities offer a variety of indexing options that can capture growth opportunities regardless of market conditions. Whether markets are trending up or down, the diverse index options within an annuity help clients work toward their wealth accumulation goals while managing risk.
Choose a product that fits your clients’ accumulation needs
Explore how our annuities can help your clients grow and protect their retirement savings. Not all products may be available for your organization. For details on available options, please contact your IMO or the Guaranty Income Life sales desk at 800-535-8110.
Protection from Retirement Risks
As clients approach and enter into retirement, they face several risks that could jeopardize their financial well-being. Incorporating annuities into a retirement strategy can help address three significant retirement risks: market volatility, sequence of returns risk, and longevity risk.
Market Volatility:
Fluctuations can erode savings and create anxiety, especially as clients get nearer to retirement.
Sequence of Returns Risk:
A poor market performance early in retirement can have lasting impacts on a portfolio.
Longevity Risk:
Many clients worry about outliving their savings and maintaining their lifestyle.
Your guidance is essential in helping clients understand these and other risks and how to protect their retirement savings. Positioning annuities as a key part of their retirement strategy can provide clients with a reliable income stream, stability against market fluctuations, and greater peace of mind in knowing they have a safeguard against outliving their resources.
Mitigate Market Volatility: Harness the Power of Zero
Market volatility poses a substantial threat —especially as clients near retirement. Unpredictable market swings can erode portfolios, creating losses that could take years to recover from. Unfortunately, many clients may not have the luxury of time on their side.
Imagine if a clients’ investments dropped in value by 50%. How long would it take for them to make up that loss? The answer may surprise them.
If $100K investment loses 50%, the value drops to $50,000. But they wouldn’t just need a 50% gain to make them whole again. They would need a gain of 100% just to break even.
This highlights the importance of protecting savings from market downturns.
As clients are building their retirement savings, the “power of zero” within indexed annuities ensures they never lose their initial premium or accumulated gains during market downturns. While market fluctuations will happen, the 0% floor on a fixed indexed annuity means clients can stay on track with their plans without having to delay goals to wait for their retirement savings to rebuild.
Protect Against Sequence of Returns Risk
Sequence of returns risk can have a significant impact on a retirement portfolio, especially if negative returns occur early in retirement. The timing of market gains and losses can determine how long a client’s savings last, and a single poor year early in retirement can drastically deplete a portfolio.
Addressing This Risk with Annuities
Incorporating a fixed indexed annuity with an income benefit rider into a retirement strategy can help manage this risk by providing a reliable and consistent income stream. This predictable income helps preserve the portfolio’s longevity by reducing the need to draw on other assets, allowing investments to remain intact and recover during market upswings.
Additionally, a FIA shifts the burden of market risk to the annuity carrier, creating a financial foundation that can withstand losses and includes built-in guarantees. During bear markets, the annuity acts as a buffer, enabling retirees to avoid selling assets at depressed values to fund living expenses. This approach not only safeguards their savings but also provides peace of mind by minimizing stress related to market volatility.
Help Reduce Longevity Risk
With rising life expectancy, many retirees face the challenge of ensuring their savings last as long as they do. The uncertainty around lifespan and safe withdrawal rates can lead to significant financial stress, causing clients to spend conservatively and live beneath their means even though they’ve spent their whole lives saving to enjoy this moment.
Providing a Lifetime Income Stream
Incorporating annuities into the retirement strategy can help clients avoid the risk of outliving their savings. Annuities guarantee a lifetime income stream, enabling clients to maintain their lifestyle without worrying about depleting their resources.
Encouraging Clients to Spend with Confidence
With the assurance of a lifetime income stream, retirees can feel more comfortable using their savings for experiences and activities they enjoy, rather than focusing solely on preserving assets. Annuities empower clients to fully embrace retirement, secure in the knowledge that their income is protected.
Choose a product that meets your clients’ protection needs
Explore how our annuities can help your clients grow and protect their retirement savings. Not all products may be available for your organization. For details on available options, please contact your IMO or the Guaranty Income Life sales desk at 800-535-8110.
Resources
Access additional resources designed to support your client conversations and annuity sales strategy.
Take the Next Step
Contact your IMO or Guaranty Income sales desk at 800-535-8110
FOOTNOTES
1. LIMRA Retirement Investment Study
2. Meeting the Challenge of America’s Peak 65 Moment – Protected Income: https://www.protectedincome.org/peak65/
*Not available on WealthChoice 5. Excessive withdrawals could cause GLBR payouts to terminate early. WealthChoice Fixed Indexed Annuity is underwritten and issued through Guaranty Income Life Insurance Company. The GLBR fee charged is 0.95% of accumulated policy value at each policy anniversary. The fee is frozen once payouts begin and is not assessed once the account value is depleted. Excessive withdrawals could cause GLBR payouts to terminate early.
**Guaranteed disclosure: Guarantees rely on the financial strength and claims-paying ability of the issuing insurer.