Never Run Out of Money in Retirement
One of the greatest fears in retirement is outliving your savings. A lifetime income rider — also called a Guaranteed Lifetime Withdrawal Benefit (GLWB) — is an optional feature added to an annuity that guarantees you will receive income payments for the rest of your life, regardless of how long you live or how the market performs.
Even if your annuity's account value drops to zero due to withdrawals, the insurance company is contractually obligated to continue making your income payments for as long as you live.
"A lifetime income rider transforms your retirement savings into a personal pension — guaranteed income for life, regardless of market conditions."
How Lifetime Income Riders Work
1
Income Benefit Base
The rider establishes a separate 'income benefit base' — often growing at a guaranteed rate (e.g., 6–8% per year) during the deferral period, regardless of market performance.
2
Withdrawal Percentage
When you activate income, you receive a percentage of your income benefit base each year. This percentage is typically based on your age at the time you start withdrawals.
3
Lifetime Guarantee
Payments continue for your lifetime — even if your actual account value is depleted. The insurance company guarantees the payments contractually.
4
Spousal Coverage
Many riders offer joint-life options, continuing payments for a surviving spouse after the first spouse passes.
Who Should Consider a Lifetime Income Rider?
Retirees concerned about outliving their savings
Those without a pension or with limited Social Security
Couples who want income to continue for a surviving spouse
Anyone who wants predictable, guaranteed monthly income
Those who want to defer income and maximize the benefit base
Retirees who want to maintain a legacy while drawing income