Retirees want income they can count on—income that doesn’t rise and fall with the market. That’s why the deferred income annuity is often a smart choice for people who want stability and peace of mind in retirement.

In this real-world example, a 64-year-old woman was deciding whether to keep $250,000 in the market or use it to fund a deferred income annuity that would begin paying her $30,000 a year at age 69.

Here’s what happened—and why getting started early made all the difference.

Define the Goal: Guaranteed Income Without Guesswork

Before deciding how to invest, it’s important to understand the goal of the money.

In this case, the purpose was clear: create guaranteed lifetime income starting at age 69. Once that’s defined, you can compare options with clarity. And that’s where deferred income annuities shine.

The Market Math: Can $250K Deliver $30K a Year?

Let’s look at what it would take for $250,000 in the market to produce $30,000 a year using traditional planning methods, like the 4% withdrawal rule.

Target Annual Income	Withdrawal Rate	Required Portfolio
$30,000	4%	$750,000

That means the original $250,000 would need to triple over five years. We calculated it would take a 24.57% return every year for five years—with no losses and no fees—to reach that target.

And even if the market did cooperate, that income still wouldn’t be guaranteed for life.

Delaying the Annuity Purchase: Does That Help?

Some advisors might suggest waiting to buy the annuity later. So we ran that scenario too.

If she waited five years and then bought an income annuity at age 69, she would need about $392,000 at that time to receive $30,000 per year.

For her $250,000 to grow to $392,000 in five years, it would require a 9.4% annual return with no down years.

That’s more reasonable—but it still comes with risk. Market drops, fees, or even one flat year could derail the plan. And the stress of monitoring performance every year doesn’t go away.

Choosing Confidence: Guaranteed Income With No Market Stress

After reviewing the numbers, she decided to move forward with the deferred income annuity. With a one-time deposit of $250,000, she locked in:

$30,000/year for life

Starting at age 69

No market exposure

No ongoing management stress

She still had other assets invested in the market, but now she didn’t need to rely on those for basic income. Her essential expenses were covered—guaranteed.

Why Starting Early Works in Your Favor

One of the biggest advantages of a deferred income annuity is that the longer you wait to take income, the more you can get.

Starting the contract now gave her more time to build income value. If she had waited five years to buy in, the same amount of money likely wouldn’t provide the same payout.

The earlier you act, the stronger your guaranteed income can be.

Let the Numbers Guide the Decision

This case study shows how important it is to run the math instead of relying on guesses or hope.

How much income do you need?

When do you need it?

What does it take to get there?

Once you have the guaranteed income annuity, you don’t have to wonder what the market will do next. You’ll know exactly what your income will be—and that it’s built to last.

Ready to Take the Stress Out of Where Your Income Will Come From?

If you want to stop worrying about market risk and lock in dependable income for the future, here’s my best suggestion

Watch the video series: 20% More Spendable Income in Retirement

Schedule a short call: Use my online calendar to book a short meeting and we’ll look at your numbers together and see if this approach makes sense for your situation.

No pressure—just clear answers.

All the best,

Marty Becker