Is your portfolio protected?

While even the most careful retirement planning can’t control for everything, an annuity can help protect your retirement income.

Article highlights

  • Guaranteed income through retirement
  • Stability during market shifts
  • Protection for health expenses

With people living longer than ever, many retirees are now looking at a 30-year retirement. A lot can happen in those years; factors like inflation, stock market performance and your health can throw a big wrench into a plan that may have looked solid at the outset.

The right annuity can give you and your loved ones guaranteed income for the long haul.


Longevity protection

With about one out of every four 65-year-olds living into their 90s1,  planning far into the future has never been more important. Furthermore, over the course of just 20 years, an inflation rate of only 3% would bring a 45% decline in purchasing power.2  A long retirement may put a strain on your finances, so you’ll want to be sure your money will outlast it—not the other way around.

As you evaluate your retirement plan, it’s important to consider the longevity potential of your financial portfolio. What sets annuities with guaranteed income riders apart from other financial products is their ability to generate income for as long as you live without running out–making them a notable option when putting together a well-diversified portfolio that’s built to last. But an annuity can also focus on growth: Variable annuities can help people tap into the potential of the stock market with professionally managed investment subaccounts and fund options.

Market volatility protection

The market might be bullish now, but it’s important to consider its inevitable downturn. In 2016 alone, the U.S. market had its worst start ever. And, although it went on to make its greatest recovery in a quarter since 1933, significant volatility soon followed.3  Having lower-risk options within your portfolio can enable you and your loved ones to better weather the storm, as well as offset unexpected expenses that may enter the picture, come retirement.

The inclusion of guaranteed assets in your portfolio can be a trusted source of protection during market volatility, for several reasons. Regardless of their performance, the payout from certain annuities will remain constant, providing a stream of income you can count on. An annuity can also help alleviate the financial strain of a dip in the market while you wait for your other assets to recover. And since some variable annuities may use dollar cost averaging to help navigate market ups and downs, they can make for a more stable, disciplined growth option.

Medical expense protection

While the possibility of late-in-life illness and declining health isn’t something anyone wishes to dwell on, it’s something that you and your family should plan for—sooner rather than later. An ideal financial plan can help protect you by covering or deferring the costs of unexpected medical bills, including long-term care.

Annuity payouts can ease some of the burden of healthcare costs, helping you maintain the lifestyle you and your loved ones enjoy. Moreover, you are free to spend the money from your annuity as you choose—rather than limited by what your insurance will pay for. This adds a layer of security, in case your needs are not covered by Medicare, Medicaid, your private insurance or your long-term care plan.

Help protect your retirement income from the risks you and your loved ones may face. Talk to your financial advisor and learn more about how an annuity can make it easier to address these challenges while also providing income for you throughout retirement.

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Variable annuities offer a lifetime income stream, access to leading investment managers, options for guaranteed growth and income (available for an additional charge), and death benefit protection. All guarantees, including those for optional features, are subject to the claims-paying ability of the issuer.

1 “Retirement & Survivors Benefits: Life Expectancy Calculator.” Social Security Administration. April 11, 2017.

2 “Inflation.” 2017.

3 “The Importance of Staying Invested through all Markets.” Lincoln Financial Group. 2017.

Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.

A fixed indexed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index. The index used is a price index and does not reflect dividends paid on the underlying stocks.

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.

Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 888-868-2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.

Lincoln annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.

Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.

All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.