Preparing for Retirement Longevity With Guaranteed Lifetime Income

Updated: October 27, 2025

No matter what your desired retirement lifestyle is, it’s important to have reliable and steady income for retirement, regardless of how long it lasts. With the average retirement now stretching over two decades,¹ it’s a good idea to prepare for rising health care costs and other essential and discretionary expenses.

Due to costs associated with living longer, the rise of inflation, and the unpredictability of the stock market, many people are considering guaranteed income sources like an annuity that can offer the benefit of regular payments in retirement. An annuity can provide you with income that you can’t outlive as well as benefits like some protection from market volatility and a death benefit for beneficiaries should you pass away.

The Need for Lifetime Income

 

As life expectancies have increased, the financial impact of longevity has made guaranteed lifetime income an important consideration for retirees who want to help protect their financial future.

Part of a Balanced Retirement Income Strategy

 

Many people use annuities as a way to supplement other sources of retirement income, such as Social Security or their savings.

The average age range of individuals who purchase an annuity is 50-70 years.⁵ Some estimates show that a 65-year-old purchasing an annuity with $100,000 could expect to receive between $7,100 and $7,550 annually in supplemental retirement income.⁶

Annuities on the Rise

 

Statistics show that people who have a deeper understanding of annuities are more likely to have a higher interest in purchasing them.³

Among the most purchased annuities in 2024 were fixed indexed annuities, which offer purchasers a chance to grow their purchase payment by participating in market growth while providing protection against market downturns.

Source: LIMRA: 2024 Retail Annuity Sales Power to a Record $432.4 Billion.
LIMRA, January 28, 2025.

Whether you’re already retired or still a few years away, it may be a good idea to consider what sources of guaranteed income you have in your portfolio today. With an immediate annuity, you can start receiving a steady stream of income now, while a deferred annuity offers the benefit of reliable, guaranteed income in the future.

One type of annuity that’s becoming more popular is an index-linked annuity with an income rider. These annuities track the performance of market indices that can provide growth opportunities for people nearing or in retirement while providing a level of protection against volatile markets. They also offer an additional stream of guaranteed lifetime income, which can help people meet the expenses of a long retirement.

Satisfaction and Confidence

 

Research indicates that retirees with an annuity are more likely to achieve the retirement lifestyle they desire and express more confidence that they won’t run out of savings even if they live to age 90.⁴

Source: Impact of Annuity Usage Survey, 2023.
DPL Financial Partners, 2023.

Overall, it’s been shown that retirees who own an annuity are more confident that their savings and investments will last through their retirement.⁴