When you imagine your retirement years, what do you see? Is it finally finding the time to travel to all the places on your “bucket list?” Devoting more time to family and hobbies? Just kicking back and enjoying your long-awaited freedom from the daily grind?

Retirement offers a lot of upsides, but one downside is the loss of a steady paycheck. An immediate income annuity can help provide financial security because it guarantees you a monthly income stream for life. If you’re not familiar with income annuities, here are some of the main benefits they can provide:

Immediate Income Annuities Can Lessen the Risk of Outliving Your Savings

Retirement can last a long time. A person who turned 65 in 2008 could expect to live to 83 years old, on average.1 And since that statistic is an average, it means that about half of those people have a chance of living longer. An income annuity is a simple way to make sure there will be money coming in, no matter how long you live—helping to protect against the risk of outliving your savings.

Immediate Income Annuities Provide Another Source of Guaranteed Income

You’ve more than likely saved some money to supplement your Social Security or other retirement income, but you want to ensure that it will be enough to cover your living needs for the rest of your life. An income annuity can be a way to take some of these supplemental savings and convert them into another guaranteed source of retirement income. Depending on how long you live, the return on your income annuity could amount to substantially more than your initial contribution.

Immediate Income Annuities Help Make Budgeting Easier

Unlike retirement income options that are tied to the stock market or interest rates, the income you’ll receive from an annuity will never vary. The income amount is set when you make the initial purchase, so you’ll always know how much you can expect to receive each month. This can help make it easier for you to stay on budget and plan for housing costs, healthcare, living expenses, and maintain your quality of life during your retirement. It’s just one more way that an annuity can help you gain peace of mind.

As with any financial decision, you’ll want to make sure you do your homework and think carefully about whether purchasing an annuity is the right decision for you (and the New York Life Learning Center contains lots of resources to help you decide). But if the idea of receiving an additional steady income for life, like a second social security check, sounds good to you, then an income annuity might just be a great addition to your savings plan.

Learn more about annuities in the New York Life Learning Center, or call 1-800-313-6841 to have your questions answered by a knowledgeable representative.