Why Annuities Deserve a Closer Look for Teachers

How to Turn Retirement Savings into Lifetime Income

As a teacher, you have likely spent decades contributing to a pension, 403(b), or other retirement savings plans. But when the paychecks stop, how do you ensure your money does not run out? For many educators, the answer lies in annuities — one of the few financial tools designed to provide guaranteed income for life.

Many educators spend their careers focused on shaping young minds — but when it comes to shaping their own retirement, too many are left with more questions than answers.

While pensions, 403(b)s, and Social Security (if applicable) are familiar to most teachers, annuities often fly under the radar — and that’s a missed opportunity.

Here’s why annuities might be worth a second look.

🔍What Is an Annuity?

An annuity is a financial product that converts a lump sum of money into a stream of income — often guaranteed for life.
Think of it as a way to turn your savings into a personal pension.

There are several types of annuities (fixed, indexed, variable), but many educators benefit most from fixed or fixed indexed annuities, which offer:

• Predictable returns
• Protection from market downturns
• Optional lifetime income riders

🎓Why This Matters for Educators

Most teachers rely heavily on pensions — but pensions often do not keep pace with inflation, and few include a cost-of-living adjustment (COLA).

If you leave teaching early, your pension may be reduced or frozen.
And if your spouse or family depends on your income, a single-payer pension can leave them exposed.

An annuity can:

• Supplement your pension with additional monthly income
• Bridge gaps if you retire early or change careers
• Ensure you do not outlive your savings

🧠Common Misunderstandings About Annuities

• “Aren’t annuities expensive?”
  Not all are. Many low-cost options are available — especially when you avoid add-ons you do not need.
• “I already have a pension — why would I need this?”
  Pensions alone may not cover future healthcare costs, long-term care, or inflation.
• “I heard they lock up your money.”
  Many annuities allow partial withdrawals, and some offer flexible access after a short surrender period.

💡 How to Turn Your Retirement Savings into Lifetime Income

There are two common types of annuities that can help educators convert savings into steady retirement income:

• Fixed Annuities – Offer a guaranteed interest rate and predictable payout, providing stability regardless of market fluctuations.
• Indexed or Variable Annuities – Allow your investment to grow with the market, offering more upside potential (but with greater complexity and some risk).

📊 A Simple Example

Imagine you have $100,000 in a 403(b) or rollover IRA and plan to retire in five years. You want reliable monthly income — for life.

By placing that money into a deferred annuity, your balance can grow safely over time. Once you retire, it can be converted into guaranteed income you will receive for the rest of your life — even if you live well into your 90s.

✅ That kind of security can offer peace of mind, no matter how the market or economy performs.

📝 Bonus Resource

Want to explore how annuities might fit into your retirement plan?
Download the Income Protection Workbook for Educators — it includes simple questions to help you identify income gaps and plan for long-term stability.
👉Get the Free Guide

📞 Let’s Talk About Lifetime Income

At Protecting Teachers’ Income, we help educators evaluate whether annuities align with their retirement goals. We will walk you through the pros, cons, and fine print — so you can feel confident, not confused.

✅Have questions or want help reviewing your options?
👉Schedule a Free 15-Minute Call — no pressure, just solid guidance tailored to you.

Talk soon,
Walter Johnson
Founder, Protecting Teachers’ Income

CA Insurance License OJ15814
walter@protectingteachersincome.com
www.protectingteachersincome.com