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Why Gen X needs a retirement income plan built for longevity
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Retirement isn’t just getting closer, it’s getting longer. If you’re in your 40s or 50s, there’s a good chance your retirement could span 25, 30 or even more years. That changes the equation.
It’s no longer just about how much you’ve saved; it’s about how long that savings will last.
As we live longer lives, it can be important to think about a retirement savings strategy that can help provide income throughout retirement.
Understanding the longevity risk in retirement
Running out of money remains one of the top financial concerns for people approaching retirement, and for good reason. Unlike market risk or inflation, longevity risk is harder to plan for. It’s the risk of simply living longer than your savings were designed to support.
And today, retirement doesn’t always follow a predictable path:
- You may retire earlier than planned due to job changes or health events.
- You may choose to retire later or phase into retirement gradually.
- Your spending needs may shift over time.
TIP: All of this reinforces why your retirement strategy needs to be built for flexibility and longevity.
How annuities help protect retirement income
Most people think of insurance as something that protects their home, car or health. But what about the risk of outliving your income? Some people refer to annuities as “longevity insurance” because they can provide payments that continue as long as you live.
Instead of relying entirely on market performance or withdrawal strategies, annuities offer a way to create guaranteed lifetime income, helping reduce the risk of outliving your savings.
Some people refer to annuities as longevity insurance because they can provide payments that continue as long as you live.
How annuities help manage longevity risk
At their core, annuities are designed to help do one thing exceptionally well: turn your savings into income that you can’t outlive.
Here’s what that means in practical terms:
| Feature |
How it may help |
| Guaranteed lifetime income |
Continues no matter how long you live. |
| Predictable payouts |
Income amounts aren’t tied to day-to-day market performance. |
| Income continuity |
Income may continue even if the value of your account changes over time, assuming no excess withdrawals. |
This is what makes annuities a powerful tool for helping manage longevity risk. Explore more about fixed indexed annuity solutions.
How income riders can help support lifetime retirement income
Many annuities offer optional features called income riders, which may be available at an additional cost, and are designed to help support your future income.
These features may provide:
- Guaranteed growth on an income base before you begin withdrawals.
- Defined payout levels once income starts.
- Lifetime income payments, regardless of how long you live, assuming no excess withdrawals.
This structure can help you plan for future income and may reduce the pressure to make complex financial decisions later in life.
Why timing matters
As retirement approaches, timing may become more important and uncertain. Market conditions, interest rates and personal circumstances can all affect your options.
By planning for a portion of your income, you may be able to:
| Planning benefit |
Why it matters |
| Reduce reliance on future market performance |
A planned income source can help make retirement less dependent on market timing. |
| Provide greater clarity around essential expenses |
Knowing where income may come from can help support budgeting and planning. |
| Simplify decision-making later in life |
Planning ahead may reduce the number of complex financial decisions needed later. |
In other words, you’re not leaving everything up to chance.
Building a retirement income plan that lasts
A strong retirement strategy isn’t just about maximizing returns. It’s also about managing risks. For Gen X, that means balancing growth with income you can rely on.
Annuities can serve as a foundation for guaranteed income by helping ensure that no matter how long retirement lasts, you’ll have a steady stream of income.
A strong retirement strategy isn’t just about maximizing returns. It’s also about managing risks.
Planning for the long run starts now
The earlier you start planning for lifetime income, the more options you may have. If you’re beginning to consider how to protect your income over the long term, see the advantage of mapping out a plan well in advance.
Explore guaranteed income strategies for retirement
Retirement could last decades. Having a plan to protect your income for that entire time matters.
Explore strategies designed to help your income last as long as you do.
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.
