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    Annuity options for retirement income protection

    october 10, 2025

    Decades ago, employer-sponsored pension plans were the norm, which gave many Americans confidence in their retirement plan. But today, that kind of income protection is rare. According to the March 2024 National Compensation Survey from the Bureau of Labor Statistics (BLS), only 15% of private-sector workers have access to a defined-benefit plan.1

    But here’s the good news: Lifetime income is still possible, and you don’t need to rely on an employer for it. Let’s unpack how to ask the right questions, determine what you value most and how to make your retirement dreams a reality.
     

    What will you want most in retirement?

    When it comes to confidence in any season of life, it’s not just about money. There are many factors that contribute to your quality of life, such as your:

    • Home
    • Business
    • Hobbies
    • New experiences
    • Philanthropic endeavors
    • Travel
    • Perhaps most costly: healthcare

    According to the 2024 Retiree Healthcare Cost Estimate by Western and Southern Financial Group, the average American 65-year-old couple can expect to spend an average of $315,000 on healthcare expenses throughout retirement.2

    That cost alone should be enough to encourage all of us to save more for retirement, but the reality is the average income in retirement is only $54,710.3

    We’ve got to do better. Taking a holistic view of your financial plan is essential to ensuring that you have enough income to last.
     

    Three threats to your retirement income

    Let’s talk about some often overlooked issues that affect the amount of money you’ll need to retire. Keep these in mind and discuss them with your financial professional as you plan for the future: 

    1. Longevity: People are living longer, and centenarians are on the rise. Your habits, gender, and family health history will give you the clearest picture of how long you might live. While no one can predict their own life expectancy, you should estimate your planned retirement age and health and wellness needs.
    2. Inflation: According to the U.S. Bureau of Labor Statistics, the average inflation rate was 2.7% as of July, 2025.4 By keeping an eye on inflation trends, you can be empowered to understand how much your nest egg could be worth in the future compared to today. 
    3. Volatility: Take stock of your investments, your appetite for risk and current market conditions to determine the potential impact on your retirement savings. 

    For a retirement income estimate that’s calculated to meet your needs, desires and circumstances, check out our Retirement income & expense calculator.
     

    Personalized income protection in today’s complicated market

    If you’re at all familiar with a traditional pension, it can be a good baseline for understanding annuities.

    An annuity is a retirement product that may provide protected, reliable income when you need it. It can help bridge the gap between the savings you’ve accumulated over time and traditional sources of retirement income, like Social Security.

    And, if you don’t need the income immediately, you can let it potentially grow tax deferred.* That’s why an annuity might be a powerful addition to your financial plan. 
     

    Which annuity options to consider for retirement income protection

    All Jackson annuities offer some form of an income stream that you can rely on. Plus, you can choose from a variety of annuity products with income options that help bring financial stability. Here’s how:

    • Decide when you need retirement income: You can invest a lump sum and choose to start receiving payouts immediately or down the road. 
    • Choose a product that’s right for you: We offer a variety of annuity products that may fit your specific retirement needs. 
    • Customize your plan with unique options: Discover how add-on benefits† can guarantee income for life‡ or help you leave a legacy.

    Here are the basic functions of each annuity type:

    Fixed annuity: A conservative option for growing your nest egg without exposing your assets to stock market volatility. 

    Fixed index annuity: Allows you to take advantage of potential growth without risking your retirement savings. 

    Registered index-linked annuity (RILA): Flexibility to choose from multiple index options, crediting methods and protection levels to help strike a balance between pursuing growth and downside protection options. 

    Variable annuity: Customize your assets across a range of investment options§ for potential growth. Add-on benefits, available for an extra charge, can provide some protection, guaranteed income for life and legacy creation. 

    Don’t wait—get ahead of the potential threats facing your retirement lifestyle. It’s worth the conversation with your financial professional to learn more about how a Jackson annuity can help protect your income in retirement.

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    1. U.S. Bureau of Labor Statistics (BLS), "31 percent of workers in financial activities had access to a defined benefit retirement plan,"  June 4, 2025.

    2. Western & Southern Financial Group, "Health Care Costs in Retirement," October 28, 2024.

    3. Terry Turner, RetireGuide, "What is the Average Retirement Income?," March 21, 2025.

    4. U.S. Bureau of Labor Statistics (BLS), "Consumer Price Index, accessed on August 26, 2025.

    *Tax deferral offers no additional value if an IRA or a qualified plan, such as a 401(k), is used to fund an annuity and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a legal entity such as a corporation or certain types of trusts.

    †Add-on benefits that provide income for the length of a designated life and/or lives may be available for an additional charge. The amount of income that these benefits may provide can vary depending on the age when income is taken, and how many lives are covered when the benefit is elected. The cost of these benefits may negatively impact the contract's cash value. There is no guarantee that a variable annuity with an add-on living benefit will provide sufficient supplemental retirement income.

    ‡On the contract anniversary on or immediately following the designated life’s attained age 59½, the for-life guarantee becomes effective provided: 1) the contract value is greater than zero and 2) the contract has not been annuitized. If the designated life is age 59½ on the effective date of the endorsement, then the for-life guarantee becomes effective on that date.

    §Select up to 99 investments and adjust options or allocations up to 25 times each contract year without transfer fees. To prevent abusive trading practices, Jackson restricts the frequency of transfers among variable investment options including trading out of and back into the same subaccount with a 15-day period.

    Annuities are long-term, tax-deferred vehicles designed for retirement and are insurance contracts. Variable annuities and registered index-linked annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met. Add-on living benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity and may be subject to conditions and limitations. There is no guarantee that an annuity with an add-on living benefit will provide sufficient supplemental retirement income.

    Before investing, investors should carefully consider the investment objectives, risks, charges, and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses provide this and other important information. Please contact your financial professional or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

    Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. Clients should rely on their own independent advisors as to any tax, accounting, or legal statements made herein.

    Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York. For variable annuities, guarantees do not apply to the principal amount or investment performance of a variable annuity’s separate account or its underlying investments. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York.

    The latest maturity date or income date allowed under an annuity contract is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a variable annuity contract.

    Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities and registered index-linked annuities are distributed by Jackson National Life Distributors LLC, member FINRA. These contracts have limitations and restrictions. Jackson issues other annuities with similar features, benefits, limitations, and charges. Contact Jackson for more information.

    Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company®, and Jackson National Life Insurance Company of New York®.