Every day, more than 11,400 Americans turn 65, totaling over 4.1 million new retirees this year. We’ve entered the heart of the Peak 65® zone, where baby boomers are retiring at record levels.
But here’s the challenge:
- 2 out of 3 Boomers aren’t financially prepared for retirement
- 1 in 3 retirees admit they’re spending savings faster than expected
- Many are worried about longevity risk, inflation, and market volatility
This has created an urgent need for protected income strategies—financial solutions that ensure retirees won’t outlive their money. For financial professionals, it’s an unprecedented opportunity to provide clarity and confidence.
Why Protected Income Matters in 2025 and Beyond
When you strip away the jargon, most clients aren’t asking for “annuities.” They’re asking for what annuities can provide: a reliable income stream for life.
There are only three sources of truly protected income:
#1: Social Security: But it replaces only about 40% of pre-retirement income on average.
#2: Pensions: Now available to only about 4% of private sector workers.
#3: Annuities: The most flexible tool left to fill the gap.
Nearly 50% of investors say they’re extremely interested in owning an annuity, even if they don’t always know the term itself. This means the conversation isn’t about “products”—it’s about outcomes.
Advisor tip: Lead with the benefit (“a steady retirement paycheck”) before introducing the solution (“an annuity”).
How to Talk About Protected Income Without Losing Clients
Financial jargon can alienate retirees. Instead, use clear, relatable language that reframes the conversation:
Say This Instead of That | Why It Works
- Protected income instead of guaranteed income | Focuses on security, not legal fine print
- Market ups and downs instead of market volatility | Feels conversational and approachable
- Early withdrawal fee instead of surrender charge | Reduces fear of complex terms
- Leaving a legacy instead of death benefit | Reframes in a positive, family-focused way
Real-life comparisons—like “a steady paycheck you can’t outlive”—make complex financial products more meaningful.
Related: Peak 65® Is Here: 3 Tips to Talk Protected Income with Today’s Retirees
Start With What They Care About Most
64% of consumers say annuities are the most difficult product to understand because of how they’re explained.
Instead of overwhelming clients with riders and features, start by uncovering their top priorities:
- Are they worried about outliving savings?
- Do they want to protect against inflation?
- Is long-term care or legacy planning a concern?
The more you tailor your solution to their concerns, the more trust and buy-in you’ll earn.
Questions Advisors Can Use to Spark Conversations
Here are some powerful, client-centered prompts:
- “Would it give you peace of mind to know you’ll always have a steady paycheck in retirement?”
- “If we built a protected income strategy to supplement Social Security, would you feel more secure?”
- “When the market has ups and downs, how important is it to have part of your income protected?”
These open-ended questions shift the focus from “selling a product” to solving a problem clients already feel.
Protected Income Takeaways for Financial Professionals
Protected income is no longer optional—it’s essential for today’s retirees. As pensions fade and Social Security falls short, clients need advisors to help them create retirement strategies that provide both stability and confidence.
Your next step? Build conversations around:
- Simplifying complex terms into relatable benefits
- Leading with what matters most to clients
- Using annuities not as standalone products, but as part of a comprehensive retirement income plan
