“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.

How Can Annuities Help Turn Savings into Income?

One powerful tool for turning a lump sum into income is an annuity. And there are a few different types of annuities that serve different purposes, depending on whether you want growth or steady income.

1. Accumulation-Focused Annuities

These annuities are still in the “growth” mindset. For example, many “multi-year guaranteed annuities,” or 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. Some will allow your money to grow for a set period, and then, depending on the contract, you may receive a lump sum payout at the end of the term.

These can potentially be ideal if you don’t need income immediately but want your money to stay protected and keep working for you in the background.

2. Income-Focused Annuities

The distribution phase of your retirement often implies a different payout structure now that you’re looking for your assets to generate income to cover your recurring costs. A fixed-index annuity, or FIA, for example, can be designed to pay income on a regular schedule instead of a lump sum at the end—sometimes structured for life.

Income payments at certain intervals over time mean you “annuitize” the money. That means instead of getting it all back at once, you may receive a relatively predictable income stream for a set number of years or even for as long as you live. It’s a way to create your own 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 nearing it, and your top concern is how to make your income last, a lifetime income annuity might make more sense.

Either way, it’s not about choosing one product—it’s about aligning your financial tools with your current phase of life and your overall financial needs and 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 have saved. It’s about how to put that money to work for you in retirement.

That $100,000 you’re not sure what to do with could potentially be positioned to help provide income and address certain financial risks, depending on your individual needs and how it’s structured.

Let’s talk about how to structure your retirement income strategy so that money isn’t a source of stress, but a tool to help you enjoy the lifestyle you’ve worked so hard to earn.  Click HERE to reach out to one of our professionals at Haven Financial Group today for a complimentary review of your finances.