How to Add Guaranteed Income to Your Retirement Plan

If retirement planning feels stressful even when you are doing “the right things,” that’s normal. Most people are not scared of saving. They are scared of the moment saving turns into spending, and the market decides to be chaotic right when bills are due.

Guaranteed income is basically your personal paycheck system. The goal is not to get fancy. The goal is to cover your must-pay bills with income you can count on, so your investments do not have to carry the whole emotional load.

Build your income floor around Social Security first

Start with your essentials, not your lifestyle. Think housing, utilities, food, basic transportation, and baseline healthcare. Once you have that number, compare it to the income you already expect, especially Social Security. For a lot of Americans, Social Security is the foundation, but it is smart to plan with eyes open because the system is under pressure and future law changes are always possible.

A practical way to use Social Security in an “income floor” plan is to treat it like the first layer of guaranteed cash flow, then decide how much of your remaining essentials you want to protect with additional guarantees. The Social Security Trustees’ 2025 summary projects the Old-Age and Survivors Insurance trust fund reserves could be depleted in 2033, after which incoming revenue would cover less than full scheduled benefits if no changes are made. That does not mean benefits disappear, but it does mean your plan should not depend on perfect outcomes. (Source: Social Security Administration)

Current projections estimate that ongoing payroll taxes would still cover about 77% of scheduled benefits after 2033 if no changes are made, which is why planning for a partial shortfall is more realistic than assuming a total loss.

Add a pension-style paycheck with lifetime income tools

Once your essentials are mapped, the next move is choosing what you want to guarantee on top of Social Security. This is where lifetime income products can play a role, especially for people who want a predictable monthly amount they can’t outlive. Depending on the product design, you may be trading some liquidity and upside for stability, which can be a good trade when you are covering basics.

To keep it real, the “right” amount to guarantee is not your entire retirement. Many people aim to guarantee essentials and let the rest stay flexible for travel, hobbies, giving, and the random stuff life throws at you. This approach can also reduce the risk of pulling too much from investments during a down market, because you are not relying on portfolio withdrawals to keep the lights on.

This is not a fringe strategy anymore. LIMRA reported total U.S. annuity sales of $121.2 billion in the third quarter of 2025, a record quarter, and noted it marked the eighth consecutive quarter with $100+ billion in sales. Translation: a lot of households are actively buying guarantees because volatility fatigue is real. (Source: LIMRA)

Use permanent life insurance as a flexible “backup income” layer

Some people want guarantees but still want optionality. That is where certain permanent life insurance designs can fit, when they are built correctly and used for the right job. Instead of being your main paycheck, it can act more like a backup bucket you can tap later, which may help you avoid selling long-term investments at a bad time. It can also support goals like family protection and legacy planning while you are alive and planning.

This is the part where accuracy matters. Permanent life insurance is not automatically a retirement plan, and it is not automatically a good deal. Costs, funding levels, policy type, and how long you hold it all change the outcome. Accessing cash value can reduce the death benefit and policy value, and policy loans have rules and risks that need to be managed. The reason it still belongs in the guaranteed income conversation is because it can add flexibility to a plan that otherwise feels too rigid. Cash value access is typically through withdrawals or policy loans, not guaranteed income payments, and poor funding or unmanaged loans can reduce policy performance or cause the policy to lapse.

It is also worth noting that many Americans still have a protection gap, which is why these conversations overlap. The 2025 Insurance Barometer findings show 51% of American adults report having some life insurance, and 40% believe they need more coverage. (Source: LIMRA)

Creating a Retirement Plan You Can Rely On

Retirement income feels stressful when everything depends on markets behaving and timelines going perfectly. Adding guaranteed income changes that dynamic by giving your plan a stable base you can build around. When essentials are covered and flexibility is layered on top, confidence usually follows. If you want help turning these ideas into a personalized income strategy that balances protection, flexibility, and long-term goals, you can schedule a conversation with SLD Solutions to explore options designed around how retirement actually works.

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