“What Can I Do with $100K in Retirement?”

Understanding the Shift from Accumulation to Income

As a financial advisor, one of the most common questions I hear—especially from clients entering retirement—is: “What should I actually do with these savings I’ve amassed for retirement?”

It’s a great question. And it usually signals something deeper: the start of the distribution phase of retirement. You’ve spent years in the accumulation phase working, saving, and investing. But now, the mindset begins to shift. It’s no longer just about growing your money. It’s about turning your savings into sustainable, reliable income that supports your lifestyle through retirement.

Let’s break down what that shift really means—and how a lump sum like $100,000 can be positioned for both security and/or income, using tools like annuities.

From Accumulation to Distribution

During your working years, your goal was to accumulate assets. You likely contributed to 401(k)s, IRAs, or brokerage accounts focused on growth, perhaps taking on a certain level of risk for a certain level of return.

But once you retire, the game changes. The focus shifts to distribution: How do I use the money I’ve saved to cover my expenses, last for the rest of my life, and maybe even leave something behind?

That’s where the $100K question comes in. It’s not just about what to do with it—it’s about what you need from it. For many retirees, that means a certain level of protected growth or income.¹

How Can Annuities Help Turn Savings into Income?

One powerful tool for turning a lump sum into income is an annuity. There are different types of annuities that serve different purposes, depending on whether your focus is growth or steady income.¹

1. Accumulation-Focused Annuities

These annuities are still in the “growth” mindset. For example, many multi-year guaranteed annuities (MYGAs) are structured for growth at the end of an agreed-upon period, rather than steady payments. These options may provide tax-deferred growth along with features designed to help reduce downside risk, depending on the terms of the contract.¹

Some allow your money to grow for a set period and then, depending on the contract, provide a lump sum payout at the end of the term. This can be ideal if you don’t need income immediately but want your money protected and working in the background.

2. Income-Focused Annuities

The distribution phase of retirement often calls for a different approach—one centered on income. A fixed index annuity (FIA), for example, can be designed to pay income on a regular schedule—sometimes for life.¹

These payouts are a result of “annuitizing” the money, meaning instead of receiving it all at once, you receive a relatively predictable income stream over time—either for a set period or as long as you live. It’s a way to create pension-style income using your retirement savings.

Choosing the Right Tool for the Right Phase

The key is knowing where you are in your retirement journey. If you’re still a few years away from needing income, a growth-focused annuity might help bridge that gap. But if you’re already retired—or very close—and your top concern is income longevity, a lifetime income annuity might make more sense.¹

Either way, it’s not about picking a single product—it’s about aligning your financial tools with your current phase of life and your broader financial goals.

Where Are You in Your Retirement Journey?

If you’re asking, “What can I do with $100K in retirement?”—you’re already thinking like someone entering the distribution phase. And that’s a critical shift. It’s no longer just about how much you’ve saved, but how to use it effectively in retirement.

That $100,000 you’re unsure about could potentially be positioned to help provide income and manage financial risk, depending on your personal goals and how the funds are structured.¹

Let’s talk about how to build a retirement income strategy that transforms money from a source of stress into a tool that is designed to support the lifestyle you’ve worked so hard to earn.