Reframing lifetime income as an essential part of retirement planning

In 2026, there’s a fundamental shift in retirement reality. Retirements are longer, less predictable, and more individual-dependent than ever before. The traditional “guaranteed income” foundation is gone.

“The prior generation of retirees had defined benefit pensions and Social Security benefits that covered their ‘essential’ expenses. Their investments were primarily used to cover discretionary expenses,” said Phil Lubinski, certified financial planner and co-founder at IncomeConductor.

If the markets went down, these retirees simply didn’t travel or golf as much until things recovered.  “As a result, clients I worked with in the 80’s and 90’s were not worried about outliving their income,” explained Lubinski.

Today, outliving retirement savings is a common concern. When you factor in the lack of pensions and Social Security with inflation and rising healthcare costs, reframing lifetime income as part of retirement planning is not an option. It’s a necessity.

Moving beyond the 4% rule and basic planning

For years, the 4% rule served as a simple rule of thumb in retirement planning. However, several developments like lower returns in fixed income and equities, longer retirements, and a greater emphasis on client behavior have quickly eroded that rule.

“I use the 4% rule as a conversation starter, not a conclusion. Now clients are seeking more personalized, resilience-focused strategies. That opens the door for lifetime income solutions,” said Kurt Auleta, Senior Vice President, head of Western Sales at Security Benefit.

Lubinski pointed out that there is no shortage of retirement planning advice on the internet. As a result, today’s retirees are coming to their advisor appointments with far more questions and expectations than prior generations.

“I’ve found that today’s clients are asking for written plans that are focused on strategies first and products second. These plans should address longevity risk, inflation risk, and include customized health care cost estimates, including the progression of long term care costs,” said Lubinski.

They’re also seeking plans with Social Security claiming analysis that are well integrated with longevity estimates. In addition, plans with simple tax estimates will no longer cut it. Most people prefer tax strategies, including a liquidation order.

“Today’s retirees are much better informed than prior generations and demand more sophistication and comprehensiveness from their advisors,” added Lubinski.

How to position annuities

The reality is that most clients don’t wake up and say, “I want an annuity.” At the end of the day, all they really want is reliable income and less anxiety about outliving their savings. That’s where an annuity can help.

Here are some tips to help advisors convey the importance of annuities in retirement planning.

Lead with the outcome: income, not account value

Start with “What needs to show up every month?” “When the conversation is about paychecks,

lifetime income in the form of annuities becomes part of the planning logic—not a product discussion,” said Liza Tyler, Head of Annuity Solutions at Transamerica and Chair of the LIMRA Annuity Advisory Board.

Separate expenses into essentials and discretionary

Position lifetime income around the bills that can’t be negotiated—housing, utilities, food,

insurance, and healthcare. This approach ensures clarity, reduces skepticism, and keeps the discussion grounded.

“The goal is to cover essentials with predictable sources and then invest

remaining assets for inflation, upside, and legacy,” explained Tyler.

Make Social Security a central part of the income strategy

Social Security is often the biggest source of lifetime income a client will ever have. “Coordinating claiming decisions with other lifetime income choices is where advisors can add real value,” said Tyler.

Explain it as risk management

Clients understand transferring risks they can’t control. Longevity is one of those risks. Not only is this type of framing simple and accurate, it resonates with clients of all ages from all walks of life.

Be transparent right off the bat

Annuities are powerful financial tools but of course, they’re not perfect.

Discuss liquidity, fees, and inflation considerations upfront. “Credibility goes up when advisors

don’t overpromise or gloss over constraints,” explained Tyler.

Show the difference in stress tests, not sales language.

A side-by-side comparison—plan A with an income floor vs. plan B without—often speaks for

itself. It turns the conversation from opinion to planning.

Keep suitability front and center

The strongest positioning is honest: annuities are tools. “They fit best when a client values

dependable income, wants protection against outliving assets, and understands the tradeoffs,” said Tyler.

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