Retiring in 5 Years? How a Financial Vehicle Can Add Confidence
December 18, 2025
If you’re five years from retirement, it might feel like a distant milestone. But in financial planning terms, it’s right around the corner. As you look ahead, you may be wondering: What financial options can help you prepare for retirement within five years? At this stage, the right tools can provide clarity, confidence, and peace of mind.
Two options worth exploring are life insurance and annuities. These financial vehicles offer different forms of protection, and when used together, they can strengthen your strategy in powerful ways. Whether you’re focused on preserving income, safeguarding loved ones, or securing your legacy, there’s still time to make smart, purposeful decisions.
What Do You Need in the Next 5 Years?
Retirement preparation isn’t one-size-fits-all. As you approach this major life change, ask yourself: Do you need income protection, asset preservation, a legacy plan — or all three?
Common concerns among pre-retirees include:
- Outliving your savings
- Covering medical or final expenses
- Providing financial security for a spouse
- Navigating the rising cost of living on a fixed income
Waiting until retirement day to address these questions can add unnecessary stress. Now is the ideal time to explore how you can balance protection with proactive planning.
How Life Insurance Supports Retirement Goals
Even if your children are grown and your mortgage paid, life insurance can still be an essential part of your retirement plan. Why? Because it’s not just about coverage — it’s about the comfort of knowing your loved ones will be protected.
Life insurance can help:
- Replace income for a surviving spouse
- Cover final expenses so they aren’t a burden
- Support a charitable cause close to your heart
- Provide potential tax advantages with certain permanent policies
Unlike temporary coverage, permanent life insurance can serve as a long-term tool that complements other retirement assets. It also delivers something that numbers can’t: the emotional reassurance that you’ve prepared for the people who matter most.
How Annuities Offer Predictable Income in Retirement
Annuities can turn a portion of your savings into steady income, providing financial stability at a time when predictability matters most. Think of them as a financial vehicle designed to reduce risk and offer peace of mind — especially when the market is volatile or uncertain.
Fixed annuities, like those available through 1891 Financial Life, are not about speculation. They are about structure. They can offer:
- Predictable, regular returns for life
- Protection of your principal
- Reduced exposure to market ups and downs
Benefits like these make annuities a strong complement to traditional retirement accounts, helping to fill any income gaps and supporting your lifestyle without added worry.
Which Option Is Best for You? Or Is It Both?
Life insurance and annuities are often seen as separate paths, but many individuals benefit from using both. It depends on your personal goals and priorities.
- Life insurance offers family protection, estate planning, and emotional security.
- Annuities offer income stability, asset preservation, and long-term predictability.
Together, they can work in tandem to support a retirement strategy that’s both resilient and flexible. A trusted representative can help you determine the right balance for your needs.
Retirement Confidence Starts With Purposeful Planning
Five years may not feel like a long time, but it’s enough to make impactful financial choices — especially when you plan with a partner who understands both your practical needs and your personal values.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
FAQ About Life Insurance in Retirement
What is the primary purpose of life insurance in retirement?
Even in retirement, life insurance can protect your loved ones by replacing lost income, covering final expenses, and supporting your legacy plans. It’s not just for raising families — it’s about preparing with purpose.
How do annuities provide income after I retire?
Annuities convert a portion of your savings into a reliable stream of income. With fixed annuities, this income can last for life, helping you cover expenses without depending solely on market performance.
Can I have both life insurance and an annuity?
Yes, many retirees use both. Life insurance helps protect your family and estate, while annuities offer income you can count on. Together, they can create a balanced retirement plan.
Is it too late to start planning if I’m only five years from retirement?
Not at all. Five years is a smart time to take action. You still have time to adjust your strategy, protect what matters, and prepare for the next chapter with confidence.
About 1891 Financial Life
Our culture is about looking out for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits, along with social, educational, and volunteer programs designed to respond to community needs. Our commitment to excellence has been recognized by Forbes, naming 1891 Financial Life among “The World’s Best Life Insurance Companies” in 2023 - and for the second time, as one of “America’s Best Life Insurance Companies,” ranking #1 in Term Life Insurance for 2026.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs, no matter what stage of life you’re in.