“Guaranteed income for life” is a powerful phrase. It conveys a promise of a specific level of cash deposited monthly into your bank account – for the rest of your life. It’s not dependent on market results or swings in interest rates. And that income can continue to be received by a spouse once you’re gone or, in some cases, go to a separate beneficiary.
But while each method of acquiring guaranteed lifetime income – Social Security, a defined benefit pension, and an income annuity — has a different source, everyone planning for retirement can create plans based on one, two or all three of these reliable and irreplaceable sources of money.
How is it possible to guarantee a monthly paycheck for life? More