Retirement Annuities
Income For Life — Like a Pension
Not all annuities are created equal. There are four different types — but one type tends to outperform the rest if you’re a retiree looking to secure competitive, guaranteed lifetime income protected from market loss. Do it right, and you can avoid annuitizing — and avoid disinheriting your heirs. Know the facts, choose wisely, and always compare with a Fiduciary.
Bridging the Income Gap: The Role of Modern Annuities
The Retirement Transition
Retirement is more than an accomplishment — it’s also a transition. A transition from the “accumulation phase” of your life to the “distribution phase” of your life. It’s a monumental financial shift and the most expensive unpaid vacation you will ever take.
Understanding this transition is fundamental to a successful retirement plan.
This is the moment you say goodbye to your paycheck from work — and now need to make sure you have more than enough income to comfortably live out the retirement you’ve always dreamed of. This is where you stop “paying in” and let your retirement income sources “pay you”.
Choosing Good Retirement Income Sources
Your retirement income sources need to meet three primary criteria:
- Plentiful
More than enough to cover your living and lifestyle needs. - Protected
Insulated from market volatility and protected from crashes. - Guaranteed
Because income that isn’t guaranteed is income you CANNOT rely on.
Once we take care of your income, then the rest of your accumulated wealth can be more easily positioned for growth without fear of it losing your lifestyle. This is because you’re no longer dependent on that money for groceries, travel, or stability — it’s money for the long term that you may want to leave for your heirs.
More Than Enough Income
In order to achieve this, we must first understand your income needs. We need to know your expenses and your lifestyle goals. From there we can figure out how much income you need to make the this possible. Then we work position your portfolio to create that income.
This is where the right kind of annuity can work into your plan. When structured properly, the right retirement annuity can provide competitive, guaranteed income that you can never outlive — income that’s protected from market risk and doesn’t require you to give up access to your money.
Not all annuities Are Created Equal
Only a select few pay high income, are protected from losses, remain reasonably liquid, and avoid the awkward restrictions of traditional “annuitization.”
Compare. Compare. Compare.
Getting this wrong means frustration and limited options. Getting it right means clarity, confidence, and a reliable foundation for the rest of your plan.
Some annuities you should AVOID, while others are very worthy of consideration. This is why you must compare—and not get fooled into thinking all annuities are the same. They are not. Actually, there are four main categories of annuities. It’s important to understand these categories — and what they offer — so you can make a more informed decision and avoid getting locked in to an old-fashioned annuity when there was potentially something much better out there for you.
Begin the Conversation
Compare Annuities with an Experienced Fiduciary and See How They May Fit into Your Retirement Income Plan.
Annuities Explained
There are Four Main Types of Annuities
Annuities get talked about a lot — sometimes with excitement, sometimes with skepticism, and often with confusion.
One reason is that the word “annuity” doesn’t describe one product — it describes multiple categories of tools that work very differently from each other, but share a similar label.
If you’ve ever heard someone say, “I don’t like annuities,” what they probably meant is:
“I didn’t like the type of annuity I was shown — or how it was sold.”
That’s fair. There are real downsides to some annuities — and in many cases, people are shown the wrong ones, for the wrong reasons, by the wrong people.
But not all annuities are the same.
Let’s take a look at the four main types — what they are, what they’re designed to do, and where the challenges can show up.
Immediate Annuities (SPIAs)
These are the most traditional form of annuity — and still used in some very specific cases. These are the least popular form of annuity and very rarely, if ever, something that we recommend without a very specific and nuanced use-case.
With a SPIA, you give a lump sum to an insurance company, and in return, they pay you a guaranteed monthly income for life. That income starts right away — and continues for as long as you live.
The trade-off? You no longer own the money. You’ve exchanged your cash for a stream of payments, and the asset is now off your balance sheet. There’s typically no liquidity, no growth, and no access to the remaining value if you change your mind.
Typically Not Recommended
These annuities are simple, but they’re rigid. And for many people, that lack of flexibility doesn’t fit well with a modern retirement strategy.
Variable Annuities
Variable annuities allow you to invest in the market inside an annuity wrapper. You choose from a menu of investment options (called subaccounts), and your account value fluctuates based on market performance.
While they offer tax-deferred growth and some optional guarantees, they also tend to come with high fees and complex riders. And unlike some other types of annuities, your principal can lose value.
Too Expensive, Not Safe
Many of the negative stories people hear about annuities — high fees, market losses, complicated contracts — come from experiences with variable annuities. These are often pushed by brokers who earn commissions but don’t offer a true planning process.
Fixed Annuities
Fixed annuities are often described as CD alternatives. You give the insurer money, and in return, you get a fixed interest rate for a certain number of years.
They’re straightforward and low-risk, but they’re not built for high income — and they don’t offer any potential for growth beyond the declared rate. Once the contract ends, you may need to move the money again, which could create future complexity or tax issues.
Safe… But Unimpressive
Fixed annuities can play a conservative role, but they don’t solve the challenge of generating larger amounts of income.
Fixed Index Annuities (FIAs) with GLWBs
Also known as “Hybrid” or “Next-Gen” annuities, these are a more modern type of annuity that let you share in the gains of the market without participating in the losses.
You get income for life — like a pension — without giving up access to your money. Your principal is protected from market downturns, your income is guaranteed, and your heirs can still receive your remaining balance.
That wasn’t possible in the past.
Older annuities required you to “annuitize” — handing over your principal permanently in exchange for monthly payments. Once you passed, the payments stopped, and your principal stayed with the insurance company.
Modern annuities changed that.
With a Guaranteed Lifetime Withdrawal Benefit (GLWB), your income is:
- Contractually guaranteed to last your lifetime (and your spouse’s lifetime)
- Protected from market declines
- Keeps paying you as long as you live — even if you live long enough to run out of principal
And, because of the power of deferral, your income can grow to competitive levels.
Past performance of any asset or index should never be relied upon to predict future results. No specific product or company being promoted. Guarantees rely on the financial strength of the issuing insurer. Not FDIC insured, not a bank deposit.
More Income. More Control.
Just as important, you retain control of your money.
If you pass away, your remaining balance can still go to your spouse or beneficiaries.
And this isn’t just about safety — it’s about performance.
Depending on your age and deferral period, some contracts can deliver 5.2% to over 10% guaranteed income for life — often double or triple what traditional bonds offer, with none of the market or interest rate risk.
But here’s what matters most: not all annuities are created equal. Some pay significantly more than others.
Some offer better liquidity, stronger protection, or more competitive indexing options. And unless you’re comparing them side-by-side with a fiduciary, it’s hard to know which one is truly best for your plan.
Next-Gen Annuities aren’t the annuities of the past. They’re a modern income tool — and for many retirees, they’ve become the missing piece of the retirement puzzle.
Begin the Conversation with a Free Retirement Review
This isn’t a sales call. It’s a focused, one-on-one conversation about where you stand and what’s possible from here.
What We’ll Cover in Your Retirement Review
Lifestyle Goals
What do you want retirement to actually look like? Travel, freedom, family, security — we start with the life you want, then build around it.
Current Assets
We’ll review what you’ve built — and help uncover smarter ways to use your 401(k), IRA, or savings more effectively for retirement income.
Income Planning
We’ll identify where your income will come from — and how to make sure it covers what you care about without relying too heavily on the market.
Risk & Tax Exposure
We’ll evaluate how your plan holds up to taxes, longevity, healthcare costs, and market shifts — so your income stays steady, even when life doesn’t.
Long-Term Strategy
We’ll help you turn what you’ve saved into income that lasts — without sacrificing the lifestyle you worked so hard to build.
The Next Steps
By the end of the meeting, you’ll have clarity on what’s working, what’s missing, and what to do next.
What You Get With Fullerton
- A retirement income plan built around your lifestyle goals — not a generic formula
- A coordinated investment and withdrawal strategy that supports income for life
- Social Security timing guidance to help you get the most from your benefits
- A reliable income floor — often supported by high-quality annuities with GLWBs, when appropriate
- Tax-smart withdrawal strategies designed to adapt to changing laws and future needs
- Personalized guidance on Medicare and long-term care planning
- A clear roadmap for RMDs, Roth conversions, and income sequencing
- Legacy and beneficiary planning that protects your spouse and supports your values
- Ongoing reviews and proactive adjustments to keep your plan aligned as life evolves
- Direct access to your advisor — no call centers, no hand-offs
- A secure client portal with full access to your plan and documents
Invitations to Fullerton’s exclusive client events and appreciation gatherings - A local, retirement-minded community with shared goals and values
- Financial confidence for your spouse and family — with clarity, not complexity
- Experienced, time-tested guidance from a leading independent Arizona-based planning firm focused on your future
Income
Planning
A strategy to turn your savings into reliable, steady income — so your lifestyle stays on track in retirement.
Tax
Planning
Smart planning to reduce future taxes and keep more of your money working for you.
Health Care
Planning
Protection against rising healthcare costs, including long-term care, built into your plan.
Risk
Management
A clear approach to guarding your wealth from market swings, inflation, and the unexpected.
Real Estate
And Legacy
Planning
A plan for your assets and property that preserves your legacy and supports your loved ones.
Planning With Fullerton
Relationship Building
You’re not just another account. At Fullerton, every relationship begins with real conversation — taking time to understand your values, priorities, and goals. That connection becomes the foundation for a plan that’s built around you, not a formula.
Personalized Experience
No two retirements are the same. Your strategy will reflect your unique goals, lifestyle, and financial position. Everything is tailor-made: your income structured, your tax plan, and the preservation of legacy. The difference in the details — because it is built around you.
Holistic Approach
A good plan looks beyond the numbers. Your lifestyle, your family, your values — it’s all connected. That’s why our planning process considers every part of your life, not just your portfolio — leaving no stone unturned.
See What Fullerton Can Do For You
Going from "I hope this works" to "I know I'm covered".
Experience You Can Trust
Retirement is too important to trust to a generalist. That’s why for over 20 years, Fullerton Financial Planning has focused exclusively on helping people transition from work to retirement — and thrive throughout it. We’re not trying to be everything to everyone. We’re built to help you do one thing incredibly well: Turn your life savings into reliable income and lasting financial confidence.
Why Families Across Arizona Trust Fullerton
- Over 20 years helping Arizona retirees create income that lasts
- Trusted by more than 2,000 Arizona households — and growing
- Independent, fiduciary-based advice — no quotas, no product push
- Certified Financial Planner™ (CFP®) professionals on staff
- Regularly featured on ABC15, MoneyRadio, and financial education outlets
- Local, in-person service — no national call centers or rotating advisor teams
- Planning approach integrates investments, income, tax, Medicare, and legacy goals
- Collaborative relationships with CPAs, estate attorneys, and insurance professionals
- Focused on education-first guidance, not sales pitches or one-size-fits-all plans
- Supported by a dedicated client service team with a reputation for proactive care
“I was nervous about retiring — but they helped me see the whole picture and gave me confidence to move forward.”
— Mary J., Scottsdale
“They made a complicated plan feel simple. I wish we’d come here five years earlier.”
— Brian & Sandra T., Mesa
“They treated me like a person, not a portfolio. I never felt pressured — just supported.”
— Teresa D., Chandler
“Our old advisor never talked about income or taxes — this team gave us a plan we could actually live on.”
— Kevin M., Sun City
The Fullerton Family
Standing Strong For Clients.
Stepping Up For the Community.
Leverage Our Experience
Retirement is our focus. See what over 20 years helping retiring clients can do for your future.
Still Wondering If This Is Right for You?
Here are some of the questions we hear most often — with straight answers to help you move forward confidently.
Q: How do I make sure I have enough to retire?
Q: How do I make sure I don’t run out of money later in retirement?
Q: What’s the best way to retire and not have to give up my lifestyle or be afraid of my budget?
Q: Why do I need more guaranteed income than just Social Security?
Q: How do I protect myself from future market downturns or crashes?
Q: When is the right time to retire?
The right time to retire is when you have a plan that works no matter what the economy is doing — one that protects your income, reduces your tax exposure, and supports your lifestyle with confidence.
We help you build that plan — so retirement becomes a decision based on your goals, not guesswork.
Q: How do I avoid being forced to go back to work or worse?
Q: How can annuities fit into my income plan?
Q: My current financial advisor still has me in risky investments. It feels wrong to me now that I’m older — but am I just worrying too much?
Q: I plan to retire in the next 10 years. Is it too early to begin planning?
Q: I want to retire sooner than 10 years… Am I too late to plan?
Q: How do I make sure my spouse is taken care of if I pass first?
Q: What changes to my investment strategy should I expect when transitioning to retirement?
Q: What does the Retirement Review cost?
Begin the Conversation
We’re here to listen, understand, and help you take control of your financial future.