By Stephen Schaack, EMBA, ChFC®, ASRI®

Retirement income planning has changed. For years, the focus was accumulation. Today, clients ask a different question: How do I turn what I have into income that lasts without taking unnecessary risk?

That is where guardrails matter. As a protection-first financial professional, you already focus on managing risk. The same approach applies to retirement income design.

Clients want growth. They also want defined income. Your role is to design both into the plan.

What Guardrails Look Like
When building a retirement income strategy, focus on three key risks:

• Market volatility
• Longevity risk
• Emotional decision-making during downturns

A deferred variable annuity, structured correctly, addresses all three. Our Deferred Variable Annuity (DVA), issued through The Penn Insurance and Annuity Company, aligns with a protection-first planning approach.

Growth With Discipline
DVA offers lower-cost Vanguard variable investment options across asset classes. Combined with tax-deferred growth, this creates strong long-term accumulation potential.

Tax deferral increases the opportunity for higher long-term values compared with taxable investing. For clients still building assets, that foundation matters.

Income Structure Before Retirement
DVA includes four optional riders:

• Guaranteed Income Rider
• Accumulation Income Rider
• Guaranteed Minimum Accumulation Rider
• Enhanced Death Benefit Rider

These riders help define income parameters before retirement begins.

We recently strengthened the Guaranteed Income Rider:

• Rollup rate increased from 7% to 8%
• Maximum step-up period increased to the greater of 10 years or age 85
• Rider charge (single life) adjusted to 1.40%

Defined income bases and withdrawal parameters reduce guesswork. They create clear planning boundaries.

Liquidity and Protection
DVA allows up to 10 percent of premium payments to be withdrawn annually without surrender charges.

The standard death benefit protects beneficiaries. The Enhanced Death Benefit Rider locks in gains while protecting against market declines. This supports both income planning and legacy objectives.

Income riders help secure essential expenses. Market assets support discretionary goals. This structure creates clarity for clients and confidence in the plan.

Consumers with predictable income sources and a written plan report higher retirement confidence³.

Additional research found retirees often feel more comfortable spending when income sources such as Social Security, pensions, or annuities provide predictable monthly cash flow instead of relying only on investment withdrawals.⁴

The Opportunity for Your Practice
Guardrails shift the conversation. Instead of focusing on short-term returns, you focus on income floors, longevity assumptions, and withdrawal strategy.

You move from product selection to outcome design.

For financial professionals who lead with protection and holistic planning, structured income solutions strengthen the planning process.

If you are exploring protection-first retirement income design, connect with me on LinkedIn and start the conversation.

Sources
¹ https://www.retirementliving.com/state-of-retirement
² https://www.investmentnews.com/retirement-planning/annuity-sales-notch-fourth-straight-yearly-record-amid-demand-for-protection/265260
³ https://www.ebri.org/retirement/retirement-confidence-survey
⁴ https://www.kiplinger.com/retirement/happy-retirement/what-science-reveals-about-money-and-a-happy-retirement

Variable annuities are long‑term investment products designed for retirement. They involve investment risk, including possible loss of principal. The value of a variable annuity fluctuates based on the performance of underlying investment options. Variable annuities typically include fees and expenses such as mortality and expense risk charges, administrative fees, investment management fees, and charges for optional riders, which may reduce returns. Withdrawals prior to age 59½ may be subject to a 10% federal tax penalty in addition to ordinary income taxes. Withdrawals may also be subject to surrender charges. Guarantees, including optional living or death benefits, are based on the claims‑paying ability of the issuing insurance company, not the performance of the underlying investments. Any rates mentioned are subject to change.

For additional information please carefully read the prospectuses for the relevant variable insurance product and its underlying investment options. Deferred Variable Annuity (DVA) and its optional riders are issued through The Penn Insurance and Annuity Company, a wholly owned subsidiary of The Penn Mutual Life Insurance Company. Product and/or features may not be available in all states. Policy form number: ICC23-PI-VA and ICC23-PI-VA-CS. Rider form numbers: Guaranteed Income ICC23-PI-GIR; Accumulation Income ICC23-PI-AIR; Guaranteed Minimum Accumulation ICC23-PI-GMAR; Enhanced Death Benefit ICC23-PI-EDBR. Form numbers may vary by state. Optional benefits may incur additional charges and may not be available in combination. This product is not offered in New York. This material is intended to provide an overview of the product or concept described. All information, including product features, availability, rates and other provisions is believed to be accurate as of January 2026 and is subject to change. Penn Mutual’s variable products are primarily offered through Hornor, Townsend & Kent, LLC (HTK), Registered Investment Advisor, Member FINRA/SIPC, 800-873-7637, www.htk.com. HTK is a wholly owned subsidiary of The Penn Mutual Life Insurance Company. Our variable products are also offered through registered representatives of approved broker dealers.

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