Lifetime income is a stream of payments that continues for as long as an individual lives, typically created through annuitization, lifetime income riders on annuities, pensions, or coordinated use of guaranteed products with investments. Its purpose is to mitigate longevity risk, the possibility of outliving retirement savings, by providing a baseline of predictable cash flow that is not tied directly to market performance or a fixed end date. Lifetime income planning considers Social Security, pensions, and personal assets, and often uses insurance based solutions to turn a portion of savings into an income guarantee.

In practical retirement planning, advisors help clients decide how much of their portfolio to allocate to lifetime income solutions versus flexible investment accounts. They compare immediate annuities, deferred income annuities, and indexed annuities with lifetime income riders, explaining tradeoffs between liquidity, growth potential, and guarantee strength. For clients without pensions, lifetime income products can effectively create a private pension that complements Social Security. Advisors also emphasize insurer financial strength and the importance of understanding rider fees and benefit bases. When coordinating with life insurance, they may pair lifetime income for the retiree with death benefit protection for heirs. By incorporating lifetime income thoughtfully, producers help clients reduce anxiety about market volatility and longevity, supporting spending decisions that align with retirement lifestyle goals while maintaining safeguards against running out of money.