Annuity strategy is the overall plan for how annuities will be used within a clientTMs financial life to address goals such as lifetime income, principal protection, tax deferral, or legacy. It encompasses product selection across fixed, indexed, and variable annuities; decisions about qualified versus nonqualified funding; and the sequencing of income start dates and payout options. A well-designed annuity strategy treats annuities as one component of a diversified retirement income and risk-management plan rather than as standalone products. It also considers behavioral factors, giving clients peace of mind through guarantees while preserving flexibility and growth potential with other assets.

Advisors develop annuity strategies by first clarifying retirement income needs, risk tolerance, and existing income sources. They then decide whether annuities should create an income floor, serve as bond alternatives, or be reserved for later-life longevity protection. Advisors may use multiple types of annuities in one strategy, such as a fixed annuity ladder plus an indexed annuity with an income rider. Ongoing reviews ensure the annuity strategy evolves as markets, regulations, and client circumstances change. Understanding annuity strategy helps advisors move beyond product-of-the-month sales and instead deliver integrated, goal-based planning that makes deliberate use of insurance guarantees.