Layering Annuities for Income

A different way to talk about retirement income with clients

Most retirement conversations still begin with numbers like account values, projections, expected returns and distribution rates. Clients usually feel comfortable starting with these basics.

What is changing is where the conversation goes next. It often shifts from performance to how those assets can support income in retirement, including the role annuities for income may play. Clients want to understand, in simple terms, how their assets become something they can count on after they stop working. This is where many plans start to feel less clear.

Why income planning feels different right now

Financial professionals have always managed longevity, inflation and market risk. What’s changing now is that clients are feeling these risks all at once: they’re retiring earlier than planned in some cases, while also realizing retirement may last longer than expected. They have seen enough market movement to understand that timing matters more once withdrawals begin. And inflation, even when it’s not the headline, has reset expectations about what future income needs to support.

This mix is leading more conversations to focus on income structure, not just asset allocation. Clients don’t want more complexity. They want something they can understand and feel confident about.

Why some income strategies are getting a fresh look

This shift in focus is also prompting financial professionals to reconsider the tools they’re using in these conversations.

In the past, annuities were often presented as a single strategy that required a one-time decision. For some clients, this felt too rigid and raised concerns about access, flexibility and losing control.

Now, the focus is less on the product itself and more on how it can be used in different ways. When annuities are part of a layered approach instead of a one-step strategy, the conversation usually feels more balanced.

It’s less about putting everything into one option and more about giving each part of the plan a specific role.

A more practical way to structure income

One approach that’s becoming more popular is to separate income into two timeframes: the income a client needs at the start of retirement, and the income they might need later as costs change.

This change alone makes the discussion easier. It matches how retirement really happens, instead of treating it as just one event.

From there, it’s easier to build the plan step by step.

Start with income that needs to be there on day one

Every client has expenses that cannot be easily delayed or changed. Housing, healthcare and other basic needs usually fall into this group.

It often makes sense to cover these needs first. Using an Ameritas Income 10 Index Annuity with the Protector GLWB rider can provide income that starts at or near retirement to support these core expenses.

Once that baseline is set, something important happens in the conversation. The focus moves away from making the whole portfolio do everything at once. With the essentials covered, the rest of the plan can be more flexible in its management.

Then plan for how income needs to change over time

Once the starting point is clear, the next question is what happens as retirement goes on.

Most clients expect their expenses to increase in later years, even if they’re not sure how much. Healthcare becomes a bigger factor and inflation keeps pushing costs higher. This often creates a gap in plans where income stays the same, but expenses rise.

This is where the second layer matters. An Income 10 Index Annuity with the Builder GLWB rider is designed to grow income that can be started later, after it has had time to build up.

Why the layering approach changes the conversation

What makes this approach work isn’t just using multiple parts, but how those parts are put together.

Starting with Protector GLWB income helps take away some of the pressure clients feel about timing and market ups and downs. They can see that their essential expenses are covered without having to rely on withdrawals from a changing portfolio.

Adding the Builder GLWB as a second layer for future income doesn’t feel like giving something up. It feels like planning ahead for how things might change. Each part has its own role, and clients can see how they fit together.

This clarity is often what keeps the conversation going.

Learn more: Ameritas Income 10 Index Annuity

How this shows up in real meetings

In practice, this structure keeps clients more engaged because they’re not asked to make one big decision. They can focus on one part of the plan at a time, making it easier to ask questions and understand each step.

It also helps when concerns come up. Questions about access, flexibility or future income increases can be answered within the structure. Instead of working around objections, the plan already includes them.

The result is usually a more productive conversation, where clients feel like they’re following the logic instead of just listening to it.

Share this article with your clients, Building Retirement Income with Annuities, to get the conversation started.

A practical way to introduce it

If you want to use this in your own conversations, you can start with a small change.

First, cover the income needed at retirement. Next, show how income can be structured to increase over time as costs and needs change.

This approach doesn’t require a new conversation, just a clearer structure. For many financial professionals, it’s a helpful way to rethink how annuities fit into the bigger picture, not as a single decision, but as part of a more flexible income strategy.

Disclosures

In approved states, annuities are issued by Ameritas Life Insurance Corp. In New York, annuities are issued by Ameritas Life Insurance of New York. Policies and riders may vary and may not be available in all states. Optional riders may have limitations, restrictions and additional charges.