We understand your vision for your retirement - helping you achieve it is our greatest responsibility.
Discover lifetime income for financial security, peace of mind, and protection against market volatility and inflation.
Strategies for optimizing retirement income.
01. Greater Annual Spending Capacity
Incorporating guaranteed lifetime income and adopting a more growth-oriented asset allocation can increase annual spending capacity from retirement savings (excluding Social Security) by up to 29%, while reducing downside risk by 33%.
02. The Value of Waiting
Postponing retirement and delaying Social Security benefits from age 65 to 67 can boost annual spending potential by 16% and lower downside risk by 15%.
03. Income You Won’t Outlive
The additional spending power generated through these strategies can endure well beyond average life expectancy, offering a substantially higher spending baseline into a retiree’s 90s and beyond.
Answering this question is far from simple.
Traditional financial advice tends to emphasize increasing personal savings rates and maximizing investment returns during the accumulation phase of a worker’s life. Equally critical, however, is the decumulation phase—when retirees convert their savings into income.
The objective is clear: generate income that supports consistent spending over time and ensures assets last throughout retirement. Yet determining how to achieve that has become increasingly difficult. Americans are living longer, but the average retirement age has remained largely unchanged.¹
To help address this challenge, Ridgebow has partnered with the Bipartisan Policy Center (BPC) to better understand how individuals can optimize retirement income and to highlight the policy actions needed to strengthen financial security.
Using our model, our analysis shows that a holistic approach to retirement income can meaningfully improve outcomes. Specifically, three actions—incorporating guaranteed income, adjusting asset allocation over time, and delaying Social Security benefits—can significantly increase retirement income while reducing risk:
Pairing guaranteed lifetime income with a more growth-oriented asset allocation can increase annual spending capacity from retirement savings (excluding Social Security) by 29% and reduce downside risk by 33%.²
Delaying retirement and Social Security claims from age 65 to 67 can increase spending by an additional 16% and cut downside risk by 15%.
These combined strategies can extend higher spending levels well beyond average life expectancy, helping maintain a stronger income floor into a retiree’s 90s and beyond.
Optimizing retirement income requires a comprehensive perspective. Rather than assessing retirement accounts, home equity, Social Security, and other assets in isolation, individuals need integrated strategies that treat these elements as parts of a unified, dynamic portfolio.
Expanding access to guidance.
Not all Americans have equal access to the tools and support needed to make these decisions. Policymakers play a vital role—working alongside private-sector partners—to expand equitable access to education, planning tools, and resources that support both the accumulation and decumulation phases of retirement.
Solving retirement income challenges requires coordinated action across the entire ecosystem: recordkeepers, plan sponsors, asset managers, insurers, and policymakers. Together, they can develop innovative solutions that better serve individuals who lack traditional financial planning support.
To explore our full analysis, download the complete paper below.
Annuity Owners value lifetime income.
Financial security and peace of mind
Annuity owners place a high value on the financial security that guaranteed lifetime income provides. Ninety-seven percent report that their annuities help reduce concerns about outliving their money, and 93% say their annuities ease worries about managing everyday expenses.
Safeguard against financial fraud
Annuities help protect against financial fraud and bad investment decisions. 84% of annuity owners say their annuities make them less vulnerable to financial fraud or poor financial decisions later in life. This safeguard is vital for older adults who may face challenges in managing their finances as they age.
Protection against market volatility
Annuities offer protection against market volatility. 88% of annuity owners say their annuities help ease worries about the possibility of a stock market downturn. This protection is especially important in a volatile economy, providing retirees with peace of mind and stability.
About the Research
Generation X—representing roughly 36% of today’s workforce—is the next cohort approaching retirement. Yet, according to our latest Read on Retirement® survey, 76% believe they will face less financial certainty than earlier generations, many of whom benefited from traditional pensions.¹
Retired Baby Boomers largely agree: 85% say that guaranteed lifetime income has proven even more valuable in retirement than they expected.
Our research explored how workplace savers think about lifetime income. The key takeaway: it matters. To better understand why, we turned to those with firsthand experience—annuity owners. We sought answers to questions such as: Do annuity owners worry less about outliving their savings? Are they more confident about managing daily expenses, market volatility, or financial decisions later in life?
In partnership with Greenwald Research, we surveyed more than 1,000 annuity owners aged 60 and older to learn more.
“Been There, Valued That”
The overarching message is clear: American workers want to feel secure throughout retirement, and guaranteed lifetime income helps support that goal. Among the annuity owners surveyed:
88% believe every retiree’s portfolio should include at least some guaranteed lifetime income.
81% say lifetime income is more important for today’s retirees than for prior generations.
80% think employers should offer retirement income options within workplace plans.
Their reasons centered around five core value themes.
1. Longer Lives, Greater Peace of Mind
As life expectancy rises, annuity owners value the reassurance that comes with guaranteed income. The top three motivations for purchasing a lifetime income annuity all relate to longevity:
Confidence that savings will not run out
Assurance that essential expenses will be covered for life
Added protection in the event of a long lifespan
2. Guarantees Reduce Financial Stress
Outliving savings is the top financial fear for retirees. Nearly all annuity owners—97%—say their annuity helps them worry less about running out of money.
Everyday financial responsibilities matter too: 93% say their annuity helps reduce anxiety about day-to-day expenses.
3. More Uncertainty, More Need for Security
Economic volatility is another major concern. 88% of annuity owners report that their annuity helps ease worries about a potential stock market downturn.
They also share the broader concerns many Americans feel today, including:
Rising cost of living due to inflation (57%)
Rising health care costs (56%)
Potential reductions in Social Security (50%)
Potential reductions in Medicare (49%)
