An income guarantee is a contractual promise-common in annuity riders-to provide a minimum stream of payments regardless of market performance, subject to rider rules. Guarantees may take the form of lifetime withdrawal rights (GMWB), annuitization minimums (GMIB), or period-certain protections. The guarantee is often computed on a benefit base that may roll up at a stated rate or step up to high-water marks and is distinct from account value. Guarantees trade flexibility and rider charges for longevity insurance, providing a predictable floor of cash flow that can be coordinated with Social Security, pensions, and other income sources.

Retirees use income guarantees to hedge longevity risk. Advisors compare GMWB versus GMIB designs, rider costs, allocation limits, and spousal continuation before selecting. Projections show how guarantees interact with market returns and RMD requirements.