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Annuities: The Swiss Army Knife of Retirement Planning

Written by Eric Estrada | Jun 11, 2025 4:00:00 PM

When most people hear the word annuity, they think of guaranteed income—and that’s a great start. But annuities are far more versatile than many realize. Think of them as the Swiss Army knife of retirement planning: flexible, dependable, and built for real-world challenges.

Here are a few smart ways annuities can work for your clients:

Guaranteed Retirement Income
The most well-known use. Convert a lump sum into income you can’t outlive—ideal for covering basic living expenses in retirement.

Tax-Deferred Growth
Fixed and indexed annuities grow tax-deferred, making them great for clients who don’t need access to the money now but want safer alternatives to market volatility.

Legacy Planning
Many annuities offer enhanced death benefits, allowing clients to leave a protected and predictable payout to heirs—without going through probate.

Long-Term Care Back-Up
Certain annuities come with income doublers or long-term care enhancements, offering a built-in safety net if health needs change later in life.

RMD Solutions
Annuities can help manage Required Minimum Distributions (RMDs) in a more strategic way—either by satisfying them through income or using features like guaranteed withdrawal benefits to maintain control.

Bottom line:
Annuities aren’t just about income—they’re a flexible planning tool that can help with growth, protection, healthcare, and legacy. If your clients haven’t explored the full toolkit, now’s a great time to show them what’s possible.