Creating a Pension-Like Income Stream
How do you bridge the gap between retirement and Social Security without draining your savings — especially when market swings could hit hardest in those early years? For Mark and his wife, the answer was to create their own pension-like stream of income, giving them the confidence to retire on schedule while keeping long-term growth potential intact.
Andrew Perez
September 17, 2025
Client profile
Ages
63 & 61
Occupation
Public school teacher (husband) & part-time nurse (wife)
Marital Status
Married, two grown children
Household Savings
$700,000 in retirement accounts, $200,000 in savings
Challenge
Mark planned to retire at 65 but wanted to delay taking Social Security until age 70 to maximize his benefit. The couple needed a reliable, guaranteed income stream for those first 5 years to cover essential expenses and avoid dipping too heavily into their retirement accounts during a potential market downturn.
Solution
- Product Type: Single Premium Immediate Annuity (SPIA)
- Initial Premium: $250,000 (funded from a portion of his 401(k) rollover)
- Income: Guaranteed monthly income for 5 years (certain-only period)
Why It Worked
The SPIA provided predictable, guaranteed income that allowed Mark and his wife to delay Social Security and keep their remaining assets invested for potential growth. It acted like a private pension during a critical retirement window, reducing sequence-of-returns risk.
Outcome
Mark and his wife feel secure knowing their essential expenses are covered. When the SPIA payments end at age 70, they will begin taking their maximized Social Security benefits and use their investment accounts more strategically for discretionary spending.