Recently, I attended a powerful webinar hosted by Empower, with insights from Allianz and American Century Investments, titled The Income Imperative: Rethinking Retirement for a New Era. The discussion centered on one of the most critical but often overlooked parts of retirement planning: how to turn your savings into sustainable income that lasts for life.
Why This Matters Now More Than Ever
For decades, traditional pension plans provided retirees with a steady paycheck for life. But the retirement landscape has changed dramatically.
Access to pensions has dropped sharply. Only about 15% of private-sector workers today have a defined benefit pension plan compared to more than 40% in the 1980s (State of Lifetime Income Report, Allianz Life, 2025). The shift to defined contribution plans such as 401(k)s and 403(b)s means the responsibility for creating retirement income has moved from employers to individuals. Without a clear income strategy, retirees risk running out of money, underspending out of fear, or being forced to make difficult financial choices.
What the Research Shows
The combined findings from the 2024 American Century Retirement Survey and Allianz’s State of Lifetime Income Report make it clear:
86% of participants prefer a steady retirement paycheck rather than figuring out withdrawals on their own (State of Lifetime Income Report, Allianz Life, 2025).
78% say they would feel more comfortable spending in retirement if their basic expenses were guaranteed to be covered (State of Lifetime Income Report, Allianz Life, 2025).
70% would consider adding an annuity to their employer’s retirement plan (State of Lifetime Income Report, Allianz Life, 2025).
Nearly all plan sponsors believe it is important to offer features that help participants turn their balance into a reliable income stream (2024 Annual Retirement Survey – Plan Sponsor Report, American Century, 2024).
Income Options for Today’s Retirement Landscape
Retirement income planning is no longer a one-size-fits-all approach. Research and industry trends point to several key solutions:
1. Guaranteed Lifetime Income Solutions (Annuities)
Provide income you cannot outlive
Protect against market downturns and longevity risk
Can be designed to increase payments to help keep up with inflation (Risks Reframed, Allianz Life, 2024)
2. Target Date Funds with Income Features
Align investments with a target retirement year
Provide professional management and automatic risk adjustment over time
Some newer Target Date Funds now incorporate guaranteed income features directly in the glidepath (2024 Annual Retirement Survey – Participant Report, American Century, 2024)
3. Managed Accounts with Built-In Withdrawal Strategies
Offer personalized investment management
Integrate retirement income withdrawal planning
Can coordinate multiple income sources, including Social Security and outside assets (Building an Income Stream Throughout Retirement, Empower, 2024)
4. Hybrid Approaches
Combine market investments for growth potential with guaranteed income products for stability
Provide flexibility and risk protection tailored to the retiree’s personal needs
Why You Need a Retirement Income Needs Analysis
Accumulating savings is only half the equation. The decumulation phase, turning those savings into a reliable income, comes with complex risks:
Inflation quietly erodes your purchasing power
Market volatility can reduce account balances right when you need them most
Longevity risk means your income must last 20, 30, or even 40 years
Unexpected expenses such as health care or home repairs can derail a plan
A Retirement Income Needs Analysis helps you:
Identify the right mix of guaranteed and non-guaranteed income sources
Understand your essential vs. discretionary expenses in retirement
Optimize Social Security claiming strategies
Protect against key risks while still allowing for growth
Why Employers Should Care
For plan sponsors, offering in-plan income options is more than a benefit; it is a competitive advantage in attracting and retaining talent.
69% of plan sponsors already offer retirement income options, and another 26% are considering them (2024 Annual Retirement Survey – Plan Sponsor Report, American Century, 2024).
Nearly all sponsors say employees need help turning savings into income (2024 Annual Retirement Survey – Plan Sponsor Report, American Century, 2024).
Employees who feel confident about their retirement readiness are more engaged and less likely to delay retirement for financial reasons.
Next Steps for Individuals
If you are approaching or in retirement, now is the time to create a strategy for turning your savings into a steady income stream. I can help you:
Analyze your retirement income needs
Evaluate in-plan and out-of-plan guaranteed income options
Build a plan that balances growth, income, and flexibility
📅 Schedule your complimentary Retirement Income Needs Analysis here
Next Steps for Plan Sponsors
If you are an employer or plan sponsor, let’s discuss how to:
Incorporate in-plan guaranteed income options and income-focused Target Date Funds
Improve participant education around income strategies
Align your plan features with today’s best practices
📅 Contact me to set up a Plan Sponsor Strategy Session
Further Reading
Here are links to consumer-appropriate resources referenced in this article:
Disclaimer: This material is for informational and educational purposes only and is not investment advice, a recommendation, or a solicitation to buy or sell any security. Past performance is not a guarantee of future results. All guarantees are backed by the claims-paying ability of the issuing insurance company. Investment decisions should be based on your own objectives and circumstances and made in consultation with your financial professional.