Worried you’ll outlive your retirement savings? Here are 3 reasons to consider payout annuities.

Every retirement savings plan is different — after all, everyone has different retirement goals, investment strategies, income levels and lifestyle priorities. But fundamentally, there’s one thing you need your retirement savings to do: last throughout your retirement.

Here are three ways payout annuities can help you achieve your retirement objectives and help keep you from worrying about running out of savings.

1. You earn guaranteed income for life

The past few years have shown just how unpredictable life can be. Sometimes, you can use some guarantees, especially when it comes to your money. It’s important to remember you may have a combination of fixed and unexpected expenses during retirement. You’ll need to know you have income on hand to pay your bills.

Payout annuities are one way to guarantee income for life — or a specified period you choose — removing the worry of running out of cash flow in retirement. Payments are fixed at the onset of the contract, so they stay the same regardless of market performance or changes in interest rates.

When interest rates are low, many people don’t consider annuities; however, there may be a cost to waiting for rates to rise. Investing — and protecting — your money today versus putting it off until tomorrow can help offer the long-term security you’re looking for.

For instance, when you choose a life annuity, you’re guaranteed payments for as long as you live. If you choose a term annuity, you receive guaranteed income for a set period of time, or until you reach a certain age.

Either way, you can determine how often you receive payments — monthly, quarterly, semi-annually or annually — throughout your retirement.

2. Avoid the stress of investing

If you find actively investing your money stressful, a payout annuity may complement your portfolio and give you peace of mind.

Once you purchase your annuity, you’ll receive payments for the length of time you’ve chosen as a source of retirement income. You don’t need to do anything further, making it a reliable addition to a diversified investment plan.

Payout annuities may even be purchased with funds from non-registered plans or registered plans such as a Retirement Savings Plan or Registered Retirement Income Fund.

3. Plan with a spouse or partner

With a payout annuity, you have the option to select products to help protect both you and a partner. A joint life payout annuity, allows you to provide for two lives with one investment. How? When you set up a joint annuity, if one spouse passes away early, the surviving spouse is ensured their own income for the remainder of the annuity period.

It’s important to understand how an annuity can help provide value as a part of your overall retirement plan. They are beneficial if you want the assurance of a steady stream of income. They also provide value as a reliable source of income regardless of potential market volatility.

You’re working hard to enjoy a comfortable retirement. If you’re seeking security, stability and stress-free finances a payout annuity may be the right fit for you.

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