SPIAs: Turning Retirement Savings into a Lifetime Paycheck

SPIAs: Turning Retirement Savings into a Lifetime Paycheck

Retire with confidence, not concern.
“The goal isn’t just to retire—it’s to retire and stay retired.” — Unknown

You’ve spent decades working, saving, and building your nest egg. Now comes the next challenge: making it last.

That’s where SPIAs—Single Premium Immediate Annuities—come in. These financial tools are designed to do exactly what their name suggests: take a lump sum and immediately turn it into a guaranteed paycheck for life.

If you’ve ever wished you could recreate the stability of a pension in your retirement, a SPIA might be your answer.

🧾 What Is a SPIA?

A Single Premium Immediate Annuity (SPIA) is a contract where:

• You give an insurance company a one-time lump sum

• In return, they start paying you guaranteed income—typically within 30 days

• That income can last for a set period (e.g., 10 or 20 years) or for the rest of your life

SPIAs offer the ultimate retirement security: guaranteed, predictable cash flow you cannot outlive.

🏦 Why Choose a SPIA?

✅ Immediate income—start receiving monthly checks right away
✅ Simplicity—no market risk, no moving parts
✅ Lifetime protection—income continues even if your account is “used up”
✅ Custom payout options—individual, joint, period certain, or refund riders
✅ No investment management required—set it and forget it

It’s a pension-style strategy, but one you build for yourself.

📊 How SPIAs Work: A Simple Example

Let’s say Jim, age 67, invests $250,000 into a SPIA.

• He chooses lifetime income with a cash refund rider

• He begins receiving $1,500/month, every month, for the rest of his life

• If he passes away early, the remaining value is returned to his beneficiary

No stock market risk. No withdrawal guessing. Just financial peace of mind.

💬 SPIA Payout Options

SPIAs are highly customizable. You can choose:

| Option | Description |
|----------------------------|-----------------------------------------------------------------------------|
| Life Only | Highest payout—lasts as long as you live, nothing to beneficiaries |
| Life with Period Certain | Payments last for life, but guaranteed for a minimum number of years |
| Joint Life | Payments continue for both you and your spouse’s lifetimes |
| Life with Cash Refund | Any unused principal is refunded to your beneficiary |
| Fixed Period | Guaranteed income for a specific number of years (e.g., 10 or 20) |

🧠 SPIA vs. Just “Living Off the Interest”

Many retirees try to live off interest from CDs, dividends, or conservative portfolios. But that often involves:

• Uncertainty during low-rate environments

• Stress when markets dip

• Constant monitoring and fear of running out

A SPIA solves all of that with:

• Set-and-forget simplicity

• Lifetime guarantees

• Freedom from market timing or interest rate changes

It’s not about “returns”—it’s about reliability.

💡 Who Should Consider a SPIA?

SPIAs are ideal if you:

✅ Are within 12 months of retiring or already retired
✅ Have a lump sum saved in a 401(k), IRA, or brokerage account
✅ Want income you can’t outlive
✅ Value simplicity and safety over high-risk growth
✅ Don’t want to manage your own retirement distributions

Many clients use SPIAs to cover basic expenses, then use other investments for travel, lifestyle, and legacy.

🛡️ How KEyO Insurance Services Helps You Maximize SPIAs

SPIAs are easy to start—but choosing the right carrier, payout structure, and rider options makes all the difference. At KEyO, we:

✅ Compare payouts from top-rated insurers
✅ Customize the income plan to fit your budget and timeline
✅ Build a layered strategy with Social Security, pensions, and annuities
✅ Coordinate with your CPA or advisor to optimize tax efficiency

With Trusted Care. Tailored for You., KEyO helps you turn savings into certainty.

Final Thought:
You’ve built your retirement nest egg. Now it’s time to turn it into a paycheck you can count on—month after month, year after year. That’s the SPIA advantage.