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Retirement reality check: will your savings last?
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If you’re in your 40s or 50s, retirement may no longer be a distant idea. It’s getting real.
You’ve spent years balancing competing priorities: raising kids, supporting aging parents, managing a mortgage and saving when you can. Now your focus may be beginning to shift.
Looking ahead often prompts a pressing question: Will your savings generate enough income to last? For many Gen X households, that answer isn’t as clear as it was for the generation before them.
Why might Gen X face an income gap?
Unlike previous generations, most Gen X workers may not have a pension to rely on. Turning savings into income is largely your responsibility. Even with consistent saving, you may face a gap between what you've accumulated and what you'll need to cover essential expenses like housing, food and healthcare.
That’s why the focus often shifts from saving to generating income in retirement.
Looking ahead often prompts a pressing question: Will your savings generate enough income to last?
How to move beyond traditional retirement strategies
For years, retirement planning has relied on two common approaches: the 4% rule for withdrawals and the 60/40 portfolio. While both offer useful guidance, they may not address today’s retirement realities.
| Traditional approach |
What it means |
| 4% rule |
Suggests withdrawing about 4% of savings each year to make assets last longer. |
| 60/40 portfolio |
Includes holding 60% in stocks for growth and 40% in bonds for stability. |
These approaches can leave retirees exposed to:
- Income that rises and falls with the market
- The need to adjust spending during downturns
- Uncertainty about how long savings will last
For a generation seeking greater clarity and control, these strategies may not go far enough on their own.
A different way to think about retirement
As retirement nears, the priority shifts from building wealth to turning it into a steady, reliable income stream. For many, that means creating income that functions more like a personal paycheck, designed to help cover essential expenses regardless of market conditions.
This is where fixed indexed annuities (FIAs) can play a valuable role. By balancing growth potential with protection and income, they offer a different way to approach retirement income planning:
| FIA feature |
How it may help |
| Protection from market losses |
Your principal is protected from market downturns. |
| Growth potential |
Returns are tied to a market index, allowing for upside potential with zero downside risk. |
| Guaranteed lifetime income |
You have the option to convert savings into a predictable income stream to last as long as you live. |
Explore how fixed indexed annuities can help you create income designed to last throughout retirement.
What “lifetime income” really means
One of the most valuable features of an annuity is the ability to create income you can’t outlive. Some FIAs include income benefits while others offer optional income riders that may have an additional cost and provide:
- Guaranteed growth on an income base used to calculate future payments.
- Predictable payout rates when you begin to take income.
- Income that lasts for life, regardless of market performance and how long you live, assuming no excess withdrawals.
TIP: This helps create a stable foundation for covering essential expenses with confidence.
Why this matters now
If you're a Gen Xer or older millennial, stability matters. Using guaranteed income to cover essential expenses, such as housing, food and healthcare, can help create a stronger financial foundation for retirement.
It also provides the flexibility to help:
- Keep other assets invested for growth
- Reduce the impact of market volatility on income
- Make more confident financial decisions
There’s another important advantage to establishing guaranteed income early in retirement. It may offer the flexibility to delay claiming Social Security. The longer you wait, up to age 70, the higher your guaranteed payout, which can help strengthen an overall retirement plan.
Using guaranteed income to cover essential expenses can help create a stronger financial foundation for retirement.
Build a retirement plan that works like a paycheck
If you’re in your 40s and 50s, now may be the time to think about a shift from saving to creating lifetime income.
A balanced approach often includes:
| Planning component |
Role in retirement |
| Investments for growth |
Helping your portfolio continue to work over time. |
| Guaranteed income |
Designed to help cover essential expenses with greater clarity. |
Fixed indexed annuities can help bridge that gap by turning a portion of your savings into a predictable income stream you can count on, regardless of market conditions.
Take the next step
As retirement gets closer, the decisions you make now can shape the income you’ll rely on later. Take the time to explore strategies designed to create more predictable, lasting income.
Learn how annuities can help you build income you can count on.
Want the most from your retirement? Get smarter with Smart Strategies from Athene. Your source for tips, tools and financial solutions that can help you live your best life.
Guarantees provided by annuities are subject to the financial strength and claims paying ability of the issuing insurance company.
Not affiliated with or endorsed by the Social Security Administration or any governmental agency. This material contains educational information regarding the Social Security program and is not intended to promote any product or services offered by Athene. The information represents a general understanding of the Social Security program, is subject to change, and should not be considered Social Security, tax or legal advice. Consult a tax or legal professional before making any decision.
