Retiree reviewing financial documents on a laptop

Why Financial Uncertainty Can Ruin Retirement

Many retirees believe that saving a large sum of money is the key to a happy retirement. However, research shows that financial uncertainty — worrying about market drops, withdrawal rates, and outliving savings — causes stress and anxiety in retirement.

Research Insight: According to a RAND Corporation study, retirees with annuity-like income sources feel more secure in retirement than those relying on investments alone.

Key Takeaway: A big savings account alone doesn't ensure financial security — predictable income does.

The Link Between Guaranteed Income and Retirement Happiness

Researchers have found that retirees with reliable income streams (like Social Security, pensions, and annuities) report higher levels of financial confidence and life satisfaction.

Hypothetical Example:

John and Lisa both retired with $1 million.
John relies on market withdrawals; Lisa set up a guaranteed lifetime income stream.
John faces ongoing uncertainty managing his withdrawals to make his money last. Lisa, having converted a portion of her savings into an annuity from an insurance company, benefits from a predictable monthly income, which helps reduce her financial stress regarding essential expenses.

This simplified example illustrates how a predictable income component can contribute to peace of mind. Individual results and experiences will vary.

Key Takeaway: Having income you can’t outlive leads to
greater confidence and peace of mind.

Research Proves It – The Impact of Predictable Income

Three major studies confirm the psychological and financial benefits of
guaranteed income in retirement:

Willis Towers Watson (2012):

Retirees with guaranteed income report higher happiness and less financial stress
Read the Study

RAND Corporation (2003):

People with annuity-like income sources feel more secure in retirement.
Read the Study

Blanchett & Finke (2021):

Guaranteed income gives retirees a “license to spend” confidently.
Read the Study

Key Takeaway:Retirees who know where their next paycheck is
coming from enjoy life more and stress less.

How to Make Sure You Have Enough Guaranteed Income

The key to retirement success isn't a bigger bank account — it's a reliable monthly paycheck. Here's how you can create one:

Step 1: Get Your Number!

Use the "What is Your Number?" tool to find out how much you'll need every month.

Step 2: Secure it!

Work with an expert to identify which assets can be turned into a lifetime of monthly paychecks and develop a plan to secure those paychecks for life through insurer-backed income solutions.

Click below to get your number and explore how to secure it for life!

Let's Answer Your Questions!

Why is guaranteed income better than market withdrawals?

Guaranteed income provides stability, while market-based withdrawals can fluctuate with economic conditions.

Can I create a retirement paycheck if I don't have a pension?

Yes! Annuities can help you generate a guaranteed monthly income, just like a pension.

What percentage of my retirement savings should go into guaranteed income?

Financial experts recommend covering at least your essential expenses (housing, food, healthcare) with guaranteed income.

How do I find out my number?

Use the "What is Your Number?" calculator to get a personalized retirement income target in just a couple minutes.

The Science of Retirement Happiness – Why Guaranteed Income Matters