Lifetime Income: What is It and How Does it Work?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Lifetime Income Calculator

What is Lifetime Income?

Lifetime income refers to a steady stream of income that lasts throughout an individual’s lifetime. This is often associated with retirement planning, where the goal is to ensure a consistent flow of money during retirement years.

Examples of Lifetime Income Sources

  1. Social Security: A government program in many countries providing income after retirement.
  2. Pensions: Employer-sponsored retirement plans offering fixed payouts.
  3. Annuities: Financial products that provide regular payments in exchange for an initial investment.

Why is Lifetime Income Important?

Lifetime income is crucial for financial security in retirement. It ensures that individuals have a consistent income stream to cover their living expenses without the need to work.

Strategies to Secure Lifetime Income

  1. Invest in Retirement Plans: Contribute to 401(k)s, IRAs, or other retirement accounts.
  2. Purchase Annuities: Consider annuities for guaranteed income post-retirement.
  3. Plan for Social Security: Understand your benefits and the optimal time to start receiving them.
Lifetime Income

Lifetime Income Options Comparison

Income SourceProsConsBest For
Social SecurityGuaranteed; Inflation-adjustedFixed amount; Age restrictionsEveryone eligible
PensionsEmployer-funded; ReliableLimited control; Dependent on employer’s financial healthEmployees with pension plans
AnnuitiesCustomizable; Can be lifelongCan be complex; Fees involvedIndividuals seeking guaranteed income

Conclusion

Understanding and planning for lifetime income is essential for a secure retirement. By exploring options like Social Security, pensions, and annuities, you can ensure a steady income stream in your later years. This planning helps achieve financial stability and peace of mind during retirement. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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