Glossary

An income floor is a target minimum level of lifetime annual income that a retirement plan is designed to deliver with high reliability, typically funded through guaranteed-income arrangements such as Social Security, defined benefit pensions, and annuities, and held distinct from variable income produced by other sources. Why it matters The income floor concept organizes retirement income planning around a structural distinction: a portion of income is meant to be reliable and to

Income phase is the period in an annuity contract during which the contract is paying income to the contract owner, following any accumulation phase and the act of annuitization or income commencement. Why it matters The income phase is the stage at which the value of the contract is realized as cash flow rather than as account balance. Whether the income phase is reached, how long it lasts, and how its payments are structured determine what the contract actually delivers to the c

An income rider is a general category of rider attached to a deferred annuity contract that provides a contractually guaranteed lifetime income stream — typically through guaranteed annual withdrawals or guaranteed annuitization rates applied to a defined benefit base — in exchange for a separately disclosed annual rider charge, with specific structures including the guaranteed minimum withdrawal benefit (GMWB) and guaranteed minimum income benefit (GMIB). Why it matters "Income r