Rebuilding Retirement Income with Annuities in Your 60s

For many Americans, retirement planning hasn’t gone exactly according to plan. Life happens. Markets crash. Jobs are lost. Divorce, illness, or other unexpected events can throw your savings strategy off course.

If you’re in your 60s and feeling behind, know this: you are not alone—and it’s not too late to rebuild.

One powerful strategy for creating stable, guaranteed income in your later years is through an annuity. While some think annuities are only for those who planned early, the truth is they can be a lifesaver for those making up ground or seeking to restore peace of mind in retirement.

Let’s explore how a late start annuity can still secure the income you need and deserve.

The Myth of the “Perfect” Retirement Plan

You’ve likely seen the idealized version of retirement planning: saving diligently from your 30s, maxing out your 401(k), and cruising into retirement with a paid-off home and guaranteed pension.

Reality is very different for many people:

• According to the Federal Reserve, 27% of Americans have no retirement savings.
• Fidelity estimates that the average 60-year-old has less than 8x their salary saved—well below many financial targets.
• Inflation, caregiving costs, and economic setbacks have delayed or disrupted many retirement timelines.

This is why starting an annuity in your 60s can be a smart way to create a reliable retirement income stream—even if you’re getting a late start.

Why Annuities Work for Late Starters

If you’re rebuilding in your 60s, your two biggest priorities likely are:

1. Avoiding market risk, and
2. Creating predictable lifetime income.

Annuities are one of the few tools that do both.

Here’s what you gain with a late start annuity:

• Guaranteed monthly income—for life.
• Protection from market losses—especially important after a turbulent few years.
• Options for spousal continuation—so your partner is protected, too.
• Catch-up growth with some annuities offering bonuses or guaranteed income increases the longer you wait to take withdrawals.

Even if you only have a modest amount to allocate, converting a portion of your retirement savings into guaranteed income can stabilize your overall plan.

Three Real-Life Retirement “Rebuilders”

Let’s look at common profiles of individuals in their 60s who used annuities to regain retirement confidence:

The Late Saver:

Maria, 63, didn’t start saving until her mid-50s after raising three kids. She used a fixed indexed annuity to protect her principal and begin guaranteed income at 68—covering basic monthly needs and delaying Social Security until age 70 for maximum benefits.

The Market Crash Casualty:

Doug, 66, lost 40% of his retirement savings in the 2008 crash and became risk-averse. He allocated part of his IRA into a deferred income annuity to guarantee a future paycheck starting at 70—ensuring income regardless of market swings.

The Divorced and Starting Over:

Lisa, 61, re-entered the workforce after a divorce and needed to protect what little she had saved. A multi-year guaranteed annuity (MYGA) gave her a higher yield than CDs while offering liquidity and a safe place to rebuild.

Structuring an Annuity in Your 60s

The type of annuity you choose matters—and the good news is, you have options tailored to late starters:

You can even ladder annuities, combining different start dates to cover evolving income needs.

Risks You Can Still Avoid—If You Act Now

If you’re in your 60s, your window to act is still open—but it’s closing quickly. A late start doesn’t mean you’re out of options, but procrastination can limit your flexibility.

Here’s what an annuity can still protect you from:

Sequence of Returns Risk

Market downturns early in retirement can irreparably damage your portfolio. An annuity creates a buffer against this by securing part of your income.

Forced Withdrawals or Panic Selling

Annuities give you predictable income so you’re not selling investments at a loss to cover bills.

Outliving Your Savings

With longevity risk growing, lifetime income from an annuity ensures you won’t run out of money in your 80s or 90s.

How to Start (Even If You’re Nervous)

It’s common to feel overwhelmed at this stage—but taking action doesn’t have to be complicated.

Here are a few steps:

1. Start with your income gap.

Use a retirement budget to determine what you need monthly—and what guaranteed sources (Social Security, pension) you already have.

2. Review your time horizon.

If you’re retiring in 1–3 years, look at immediate or short-term deferred options. If you’re 60 and working until 70, use that time to build guaranteed income.

3. Speak to an annuity-licensed advisor.

Not all annuities are created equal. A knowledgeable advisor can help you avoid high-fee or overly restrictive contracts.

It’s Not Too Late—But It Is Time

Starting an annuity in your 60s isn’t just a fallback plan—it can be a smart and proactive move. It gives you a financial second wind, offering income stability, protection, and peace of mind just when you need it most.

There’s no perfect plan—but there are better decisions. If you’re ready to rebuild your retirement with confidence, now is the time to take that first step.

Ready to Rebuild?
Download our free guide: “Catch-Up Retirement Income Strategies”
📞 Or speak with a retirement income specialist at SafeMoney.com

🧑‍💼 Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This content is for informational purposes only and does not constitute financial, tax, or legal advice. Annuities are insurance products and may not be suitable for everyone. Guarantees are subject to the claims-paying ability of the issuing insurance company. Please consult a licensed financial professional to determine what strategies may be appropriate for your individual situation.