Guaranteed Income vs. a 5% Withdrawal Strategy

Guaranteed Income vs. a 5% Withdrawal Strategy

January 07, 2026

For those who want clarity and certainty around exactly how much lifetime income they can generate once income is activated, this comparison may be insightful.

I prepared a side-by-side analysis comparing a guaranteed income planning annuity to a traditional managed investment portfolio assuming a 5% annual withdrawal rate. The objective was straightforward: determine how much capital would be required in a managed account to produce the same level of income as the annuity’s contractual guarantees.

The results highlight a meaningful difference in efficiency between guaranteed income planning and market-dependent withdrawal strategies—particularly for retirees prioritizing predictability, longevity protection, and income durability.

You can view the full breakdown here: 👇