Relative Income Comparison Tool
Two ways to turn savings into retirement income: guaranteed income from an annuity, or systematic withdrawals from a traditional portfolio. This tool illustrates how much income each approach could produce from the same dollars — and how much capital each would require to produce the same income.
Compare guaranteed income to portfolio withdrawals
Enter an amount and the rate assumptions you'd like to test. Both rates are inputs you control, not quotes.
Guaranteed annuity income
- Contractually guaranteed income for life, backed by the issuing insurer's claims-paying ability.
- Income does not fall when markets do, which reduces sequence-of-returns risk.
- In exchange, you typically give up liquidity, access to principal, or both — often during a surrender period.
- Fixed payments may lose purchasing power over time unless the contract includes an increasing income feature.
- Product charges, rider fees, and payout terms vary widely and materially between insurers.
Portfolio withdrawals
- Full liquidity and access to your principal at any time.
- Growth potential that can support rising income and a larger legacy.
- In exchange, no income guarantee — a poor market sequence early in retirement can permanently reduce sustainable income.
- Withdrawal rates like 4% are historical research reference points, not promises.
- Requires ongoing management, rebalancing, and discipline during downturns.
How this tool works
- Annuity income is calculated simply as your amount multiplied by the payout rate you entered. It does not reference any specific product, insurer, or current rate.
- Portfolio income is your amount multiplied by the withdrawal rate you entered. The 4% default refers to widely cited historical withdrawal-rate research and is not a guarantee of sustainability.
- Capital requirements are the reverse calculation: your target income divided by each rate.
- Neither side is adjusted for inflation, taxes, fees, product charges, or the value remaining to heirs, all of which can change the comparison substantially.
- For a real comparison, we obtain current illustrations for products you actually qualify for and model them against your full financial picture.
Important: This tool is provided for informational and educational purposes only. It does not constitute financial, investment, tax, or legal advice, and it is not a recommendation, offer, solicitation, or quote for any annuity, insurance product, or security. All figures are hypothetical illustrations generated solely from the assumptions you enter and do not represent the performance, pricing, or terms of any actual product.
Annuity guarantees are subject to the claims-paying ability of the issuing insurance company. Annuity contracts contain limitations, exclusions, surrender charges, and fees; withdrawals may be subject to income tax and, if taken before age 59½, an additional 10% federal penalty tax. Investing involves risk, including the possible loss of principal, and no withdrawal strategy can guarantee income for life. Product availability and features vary by state.
Please consult a qualified financial, tax, or legal professional and review a current product illustration and prospectus or disclosure document before making any decision. G&R Financial Solutions · Securities offered through Simplicity Investments, Inc., Member FINRA/SIPC.
Which approach fits your retirement?
We'll model both against your actual numbers, using current illustrations rather than assumptions.