Every day in 2025, 11,400 Americans celebrate their 65th birthday.
That’s a record-breaking 4.18 million people reaching retirement age this year alone.
This historic wave, known as the Peak 65® Zone, is happening right now alongside growing concerns about inflation, market volatility, Social Security’s future, and longer lifespans. One in three retirees say they’re spending down savings faster than expected, while many others are delaying retirement entirely.
With more retirees seeking stability in uncertain times, the demand for protected income strategies is rising. However, many clients don’t understand protected income, how it works, or how it fits into a strong retirement plan.
That’s where financial professionals come in. Here’s how to help clients understand and embrace protected income and find the security they’re looking for amid uncertainty.
What Are Examples of Protected Income Sources?
Protected income refers to money a retiree receives regularly and can’t outlive. The three primary sources of protected income are:
#1: Pensions
While 60% of private sector workers had a pension in the early 1980s, that number had fallen to 3% by 2020. Currently, 24% of baby boomers have pensions, but that leaves a large majority of retirees without a reliable, employer-backed income stream to count on.
#2: Social Security
On average, Social Security only replaces around 40% of retirement income. For many retirees, that’s not enough to maintain their standard of living, especially as healthcare costs and inflation continue to rise.
#3: Annuities
When markets are volatile, consumers tend to flock toward guaranteed income products. However, according to the Alliance for Lifetime Income, 64% of consumers say annuities are the most difficult financial product to understand because of how they’re explained.
Why Does Guaranteed Income Become More Appealing During Market Volatility?
In 2024, annuity sales hit historic highs, a sign that more Americans are looking for ways to stabilize their income in retirement.
With 62% of retirees worried that their income wouldn’t cover essentials like rent and food, and 69% concerned that rising prices will force them to chip away at their savings faster than expected, many are looking for a financial safety net to reduce day-to-day anxiety.
When thoughtfully integrated into a retirement plan, guaranteed income strategies do more than provide income; they help retirees feel more in control of their future. With a dependable income stream they can’t outlive, clients are often more willing to enjoy their retirement, say “yes” to travel, spend time with loved ones, and stop worrying about what the markets might do next. It’s not just about protecting their money—it’s about protecting their peace of mind.
How to Talk to Clients About Guaranteed Income Options: 3 Tips
Guaranteed income products, specifically annuities, have often faced skepticism due to past sales practices, complexity, or outdated product designs. But today’s offerings are far more flexible, transparent, and customizable. Helping clients understand how these tools work starts with how you frame the conversation.
Here’s how to make those discussions more approachable:
#1: Ditch the Technical Jargon
Focus on what a protected income strategy does, not what it’s called. Reframing the conversation around outcomes rather than features of a specific product builds trust and makes complex solutions more approachable. Try something like, “This strategy can help ensure you’ll receive a paycheck every month for the rest of your life, even if your other investments fluctuate.”
#2: Know Their Risk Tolerance
Different clients need different levels of certainty. Some want guaranteed income; others want performance-based growth with optional protection. Start by asking how much risk they’re comfortable taking with the income they’ll rely on most.
#3: Prioritize What They Care About
Don’t immediately overload clients with all the features of a particular solution. Products have evolved immensely over the years, and now there’s a surplus of options, riders, and fees that can address several different challenges. Instead, focus on what matters most to a client, whether it’s long-term care, leaving a legacy, or inflation protection, and build from there.
Related: 7 Common Annuity Myths—And the Truths Behind Them
What to Look for in the Protected Income Space
When recommending annuities or other guaranteed income solutions, evaluating both the client’s needs and the product’s features is essential. Consider the following factors:
- Financially strong, highly-rated carriers
- Setting conservative expectations for returns
- Well-rounded products with competitively priced indexing strategies
- Alternative indexes with real-world performance records
- Matching product to client risk tolerance (guaranteed vs performance-based)
- Prioritizing rider features (fees, LTC benefits, death benefits)
Remember: Protected Income Isn’t Just One Product—It’s a Strategy
Protected income isn’t about a single solution. It’s about creating retirement confidence. Clients won’t walk into your office asking for an annuity. But they’ll ask for:
- Stability
- Peace of mind
- Protection against outliving their money
It’s up to you to connect the dots between their fears and the strategies to address them. As concerns around longevity, inflation, and income security continue to rise, your role in delivering clarity and confidence is more important than ever.
Working with a team of experts can ensure you have access to the solutions and tools you need to simplify the conversation and deliver meaningful value to your clients.
