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Would you be considered financially fragile in your retirement?
That’s the question that started this conversation. Retirees today face challenges that previous generations didn’t: fewer pensions, longer lifespans, and more responsibility to turn savings into steady income. Once you stop working, your ability to earn new income is limited—and that makes stability more important than ever.

That’s why strategies that build guaranteed income while protecting your legacy have become essential. And one of the most effective ways to do that is by using an annuity designed to give you a 14% bonus on both income and death benefit, right from day one.

Understanding Financial Fragility in Retirement

The Center for Retirement Research at Boston College published a study called Will the Financial Fragility of Retirees Increase? It pointed out that retirees today rely more on personal savings and less on guaranteed income sources like pensions. That makes them more vulnerable to:

A drop in market value or investment income
Rising medical expenses
The loss of a spouse’s Social Security income

The study estimated that widows may need about 79% of the couple’s income to maintain their standard of living. Yet many will have far less. The takeaway is clear: retirement income has to be dependable, flexible, and designed to last.

Why Bonuses Like This Matter Now

Traditional investments can lose value when the market drops or when interest rates change. A guaranteed annuity removes that uncertainty.

The American Equity Income Shield Bonus is one of the few annuities that gives you a 14% immediate bonus on both your income and death benefit values—and keeps growing at 6.5% compounded annually for up to 20 years.

This helps retirees in two critical ways:

It strengthens your income base before you ever start withdrawals.
It increases the legacy your spouse or heirs will receive if you pass away early.

Instead of trying to “outrun” the market, you begin retirement with a built-in head start.

At a Glance

Feature	American Equity Income Shield Bonus	Typical Fixed Index Annuity
Upfront Bonus	14% on income and death benefit	0–10%, usually income only
Growth Rate	6.5% compounding up to 20 years	4–6% simple or 10-year limit
Death Benefit	Always exceeds original premium	Usually equals premium
Flexibility	Full value after year 5; Roth conversions allowed	Limited access or shorter term
Company Rating	A (Excellent) by AM Best	Varies

How the Strategy Works

Let’s look at an example based on real numbers.

A 65-year-old couple sets aside $127,500 into the annuity, planning to use it as a future income source around age 85.

Timeline	Details	Guaranteed Value
Day 1	14% bonus applied	$145,350 income value
Years 1–20	6.5% compounded annual growth	Increases each year
At Age 85	Deferred income activated	$43,000+ annual lifetime income
If Passed Away Before Income	Death benefit exceeds original premium	Paid to beneficiary

This plan can be adjusted at any time. If income begins earlier, the payments are recalculated based on the deferral period. If the couple changes their mind, they can surrender after the fifth year and recover nearly all of their original premium.

Flexibility Without Risk

Many people hesitate when they hear the word “annuity” because they worry about losing access to their money. This plan addresses those concerns directly:

Liquidity: After year five, the surrender value equals nearly the full deposit.
Death Benefit Protection: The benefit always exceeds the total premium.
Roth Conversion Option: You can convert portions gradually, keeping the income and death benefit advantages intact.
Long-Term Care Benefit: If one spouse needs care, income payments can double temporarily while the contract value remains protected.

This gives retirees control, safety, and flexibility all in one design.

Two Bonuses, One Purpose

Most financial products make you choose between growth and protection. This annuity combines both.

Immediate 14% boost to income and death benefit values
Guaranteed compounding for up to 20 years
Lifetime income available when needed
A larger payout to beneficiaries if you never use the income
A full return of premium (or more) even in worst-case scenarios

It’s a strategy that rewards patience and provides certainty—two things the market can’t guarantee.

Who This Strategy Fits Best

This approach works well for:

Retirees who want reliable, increasing income
Couples planning ahead to protect a surviving spouse
Individuals with IRAs or 401(k)s seeking safe, tax-efficient growth
Anyone who values steady returns without market exposure

It’s not about chasing the highest return—it’s about locking in a better starting point and ensuring your plan works no matter what happens in the economy.

The Bottom Line

Retirement doesn’t need to be fragile. You can strengthen it with guarantees that work in your favor from day one.

The American Equity Income Shield Bonus gives retirees both income security and legacy protection through a 14% upfront bonus, compounded growth, and flexible options for the future.

To see how this strategy could fit your retirement plan, visit AtlasAnnuity.com and schedule a short call with Marty Becker of Atlas Financial Strategies.

It’s a logical, long-term approach to help you stay ahead—financially and securely.