Annuity ladder is a strategy that spreads annuity purchases across multiple contracts with different start dates, terms, or types to diversify interest-rate risk, liquidity, and income timing. Ladders might use a series of multi-year guarantee annuities maturing at staggered intervals, a sequence of deferred income annuities that start at different ages, or a combination of fixed and variable annuities. By not committing all funds at one rate or start date, clients can potentially benefit from future rate environments and maintain more flexibility. Annuity ladders mirror bond and CD laddering concepts but incorporate insurance guarantees and income options.

Advisors propose annuity ladders when clients are hesitant to lock large sums into a single product or surrender schedule. They design ladders so portions of principal become available at regular intervals, reducing anxiety about future opportunities or unexpected needs. In retirement income planning, a ladder of income start dates can align with different phases of retirement spending, from early active years to later longevity risk. Advisors document ladder rationales for suitability and show side-by-side projections versus a single-contract approach. Understanding annuity ladders helps advisors create more nuanced, flexible annuity allocations that address both behavioral and financial concerns.