Over the next four years, the final wave of Baby Boomers will reach age 65, joining a record 30.4 million Americans who will enter retirement age this decade.¹ In 2025 alone, 4.18 million people officially joined those ranks—the most ever in a single year.² Many have spent decades saving and investing for retirement with discipline and intention. Yet, retirement today is about more than a balance on a statement; it is about whether your savings can be converted into income you can count on year after year, for the rest of your life.

Retirement is as much an emotional adjustment as it is a financial one. As you shift from growing your assets to relying on them for income, you deserve the reassurance that your retirement plan can withstand market volatility and deliver reliable income no matter the economic climate.

Retiring into uncertainty 

Since the start of 2026, financial markets have experienced heightened volatility due to geopolitical tensions, rapid technological advancements, and shifting economic expectations. In addition, concerns about persistent inflation and the future of Social Security have heightened investor anxiety.  

It’s understandable that retirees and those approaching retirement may feel anxious about the potential impact of the economic outlook and continued uncertainty on their future security. These concerns can force difficult decisions about the best way to move forward:

• Slow down: Reduce spending, postpone major purchases, or delay retirement in the hope that conditions improve.
• Stay the course: Continue withdrawing savings to cover planned expenses, even if it means locking in market losses or facing higher tax consequences.
• Change direction: Put a new strategy in place, even if it requires more time or resources.

None of these options offer what most retirees want—confidence that their financial plan will meet their needs, no matter how long they live. A new type of tool can help address that need.

Annuities may offer a more predictable plan

While traditional investments like stocks and bonds play a vital role in a portfolio, they are not designed to deliver stability and predictability to a retirement plan. This is what annuities are uniquely built to do.

Annuities are insurance products that do two things well: Preserve principal from market losses and generate guaranteed lifetime income for retirement. Today, a new breed of annuities is available—low-cost, commission-free solutions that can complement an investment portfolio, offering greater value, transparency, and flexibility than traditional commissioned products, often with meaningfully lower fees and potentially higher payout rates. Research shows that adding an annuity to a retirement plan helps investors stick with their strategy when markets get rocky and feel more confident about retirement spending.³

Strengthening your retirement strategy

Annuities can help in several ways:

• If you’re concerned about market downturns but still want growth potential.
  Allocating a portion of your portfolio to a commission-free fixed index annuity (FIA) can provide growth potential tied to a market index with complete principal protection from market losses, subject to contract terms. FIAs are often used as a complement to bonds or to add a measure of certainty to a retirement income strategy. 
• If you want to preserve the gains you’ve already made.
  After a strong market run, it’s natural to worry that the next downturn could erase your progress. Moving a portion of your earnings into a commission-free, multi-year guaranteed annuity (MYGA) enables you to lock in a fixed, guaranteed rate for a set term while earnings compound tax-deferred. This is an option worth weighing for money you might otherwise leave in a savings account or CD.⁴
• If you’re comfortable with some risk in the portfolio but prefer guardrails.
  A commission-free registered index-linked annuity (RILA) lets you stay invested in the market with a built-in buffer absorbing a portion of losses. Investors often use a RILA to replace some of their stock holdings to mitigate the impact of market swings while preserving growth potential.
• If you want a reliable income stream.
  Relying on an investment portfolio for income can force you to sell assets at the worst possible time—when markets are down. Adding an annuity with an optional income benefit is designed to give you a dependable stream of income to cover essential expenses in retirement, easing pressure on the rest of your portfolio.

Moving forward with confidence

An annuity isn’t intended to be a substitute for your growth-focused investments; it’s a strategy designed to complement other investments in your portfolio, providing principal protection and a stream of income, regardless of market conditions. With a foundation of guaranteed income in place, the rest of your portfolio can be positioned for growth, discretionary spending, and legacy, leaving you confident that you have the right tools in place to meet your goals.

If you would like to see how a commission-free annuity could potentially strengthen your financial plan, the team at Wealth Enhancement can walk you through your options and help you decide whether an annuity has a place in your retirement strategy.

1. U.S. Census Bureau, 2019. 

2. Alliance for Lifetime Income, 2025.

3. David Blanchett and Michael Finke, “Guaranteed Income: A License to Spend,” Alliance for Lifetime Income, June 2024.

4. FIAs, RILAs, and MYGAs are not bank products, and therefore, not FDIC insured. Rates subject to change at any time. Guarantees are based on the claims paying ability of the issuing insurance company.

Fixed Indexed Annuities are insurance products, not securities. Interest credits are linked, in part, to the performance of a market index, but you are not directly invested in any index. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Surrender charges, market value adjustments (if applicable), and other contract limitations may apply. Product features vary by carrier and contract.

Registered Index-Linked Annuities (RILAs) are securities and insurance products subject to investment risk, including possible loss of principal. While a buffer or floor may provide limited protection against certain market losses, losses may exceed the level of protection provided. Product features, caps, participation rates, buffers, and floors vary by contract. Investors should carefully consider the prospectus and contract provisions before investing.

Annuities are long-term financial products designed for retirement purposes. Withdrawals may be subject to surrender charges, market value adjustments, and tax penalties if taken prior to age 59½. Consult with a qualified financial professional and tax advisor regarding your specific situation

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