Glossary

An in-plan lifetime income option is a lifetime income arrangement offered inside an employer-sponsored defined contribution plan, where a participant can direct plan assets into a structure that pays income for life without leaving the plan to purchase a separate arrangement.

An income annuity is a lifetime income arrangement in which a lump sum is exchanged with an insurer for a guaranteed stream of payments, encompassing both immediate-start and deferred-start structures. Why it matters Income annuity is the umbrella term for the most direct way to convert savings into guaranteed lifetime income. The category covers two arrangements that share a structure but differ in timing, and naming the category is the first step in distinguishing which timing f

Income floor is the level of guaranteed lifetime income an individual establishes to cover essential expenses, typically funded through Social Security, pensions, and lifetime income products, with additional retirement resources providing discretionary or upside income above the floor.

Income phase is the period during which a lifetime income arrangement is making scheduled payments to the contract owner, following any accumulation or deferral phase and continuing until the payments end under the terms of the arrangement.