Annuity income rider is an optional feature added to an annuity contract, typically for an additional fee, that provides guaranteed lifetime income without requiring full annuitization. Income riders often create a separate income base that grows by a guaranteed roll-up rate or market-based step-ups and then apply age-based payout factors when the owner elects income. Riders may support single or joint lifetimes, inflation-adjusted payouts, or enhanced benefits in the event of long-term care needs. Because riders keep the underlying account value intact and retain some liquidity and death benefit potential, they have become a popular alternative to traditional annuitization for retirement income planning. However, income riders carry ongoing charges and contractual rules that must be clearly understood and monitored over time.

Advisors recommend annuity income riders when clients want guaranteed lifetime income but also value flexibility and legacy options. They compare rider costs, roll-up rates, and payout factors across products, showing how activating income at different ages affects lifetime payments. Advisors emphasize rules around excess withdrawals, which can reduce future income guarantees if clients take more than the rider allows. During annual reviews, they track income base values and discuss when to "turn on" income based on health, longevity expectations, and other income sources. Compliance reviews focus on whether riders are appropriate given the clientTMs time horizon and fee sensitivity. Understanding annuity income riders helps advisors design retirement income plans that balance guarantees, flexibility, and cost.