As a retiree, the last thing you want to do is to spend your time worrying about where your income is going to come from. Unfortunately, that’s the situation many seniors find themselves in. Many people have too little saved for retirement. And, unfortunately, even those who feel like they have a pretty good-sized nest egg still need to worry about maintaining a safe withdrawal rate and investing wisely in order to make the money last.
One reason why so many older Americans end up worrying about where their money will come from in retirement is that they only have one source of guaranteed income that they are confident will last for life: Social Security. And Social Security doesn’t really provide all that much money for most. In fact, the average Social Security benefit in 2025 was around $2,o09.50 as of September 2025.
If Social Security is your only source of guaranteed income and you get around the average benefit or less, you’d be looking at bringing in an income that’s just barely above the poverty level, and that most likely doesn’t really cover your needs. If you feel like this puts you in a precarious position, you’re exactly right — especially as healthcare costs for seniors can be so high.
The good news is, it is possible to find other sources of funds that are guaranteed to provide stability for life. Here’s what you can do to make that happen.
Other sources of guaranteed income to supplement Social Security
There are a few options out there to line up a guaranteed income in retirement.
One option is to find a job with an employer that offers a defined benefit plan. This type of traditional pension is different from a 401(k), as a defined benefit plan guarantees you a set amount of income based on your salary and tenure on the job, while a 401(k) offers the opportunity to invest for your own future but doesn’t come with any guarantee that you’ll end up with a steady amount of income or end up with income for life.
Unfortunately, there aren’t a lot of jobs that offer a defined benefit pension plan anymore. If you work for the government, you may be able to find this kind of retirement plan. If you work in the private sector, on the other hand, there’s only a very small chance you’ll get your guaranteed income from this source.
Another option, which is available to anyone who wants it, is to invest in an annuity. This allows you to pay a lump sum or to make payments over time in exchange for the ability to receive guaranteed income from the annuity later. You can opt for different kinds of annuities, each with its own terms and conditions, and some annuities offer guaranteed lifetime income. This is what you’d want to look for if you’re hoping to supplement your Social Security benefit with money that’s going to last.
With an annuity providing guaranteed lifetime income, you’ll have the certainty of knowing how much money you are going to have coming to you, and you won’t have to worry about the funds running dry before your death. You aren’t going to have to manage a bunch of different investments or navigate how to find a safe withdrawal rate, either.
Now, there are some things to watch for when selecting an annuity, and you need to understand the rules, including surrender fees that could be charged to you if you decide to cancel out of the plan early. A financial advisor can help you to address these issues and find the right annuity that makes good sense for your situation. You can also research and shop for annuities online, as long as you read the fine print and make sure you understand the terms and conditions.
It’s worth looking into an annuity as it may be one of your only choices for getting another source of steady lifetime income when you’ve decided that Social Security alone isn’t enough.
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