What Are the Best Retirement Income Strategies for 2026 — Roth IRAs, Annuities, or Both?

If you’ve been Googling “best retirement plan for 2026” or “how to get steady income in retirement,” you’re not alone.

We hear it every day in our Seguin and New Braunfels offices:

“I’ve saved all this money — but how do I make sure it lasts and doesn’t get eaten by taxes?”

The answer? It’s not just one product — it’s the right combination of tools. Two of our favorites: the Roth IRA and the annuity.

Key Takeaway: A smart 2026 retirement income plan combines a Roth IRA for tax-free growth and withdrawals with an annuity to guarantee income for life — giving you both flexibility and peace of mind.

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🔁 Roth IRA vs. Annuity: What’s the Difference?

Here’s the simple breakdown — no financial jargon needed.

✅ Roth IRA

  • You contribute after-tax dollars

  • It grows tax-free

  • You can withdraw tax-free in retirement

  • You control how and when to take money

  • No required withdrawals at age 73

Best for: Tax flexibility, younger savers, people worried about future tax hikes

✅ Annuity

  • You give a lump sum (or regular payments)

  • In return, the company gives you guaranteed monthly income

  • It’s like a pension you create yourself

  • Can last your whole life, no matter how long you live

Best for: Lifetime income, risk protection, stability when the market dips

💡 Why Not Just Use One?

Because each solves a different problem.

  • Roth IRAs give you tax control and growth

  • Annuities give you income you can’t outlive

Put them together, and you’ve got:
✔ Tax-free money
✔ Guaranteed paychecks
✔ Less stress about running out

👨‍👩‍👧 Who Are These Tools Perfect For?

We work with clients all over Seguin and New Braunfels, and here’s who benefits most:

🏡 Near-retirees (ages 55–70)

Trying to stretch their 401(k), protect from market dips, and avoid big tax bills

👩‍⚕️ Self-employed professionals

Who don’t have a pension or workplace retirement plan

👵 Caregivers or adult children

Looking to make sure mom or dad’s retirement lasts

📍 Local Example: Roth + Annuity in Action

John and Maria, New Braunfels residents

  • Ages: 62 and 60

  • Retiring in 3 years

  • $400K in a 401(k), $100K in savings

They rolled part of their savings into:

  • A Roth IRA to grow money tax-free and access when needed

  • An annuity that starts paying $1,200/month at age 65 for life

Now they know:
✅ They have guaranteed monthly income
✅ They won’t get surprise tax bills
✅ They’ve got backup if the market crashes again

People Also Asked

Is a Roth IRA better than an annuity?

They’re not better or worse — they serve different roles. Roth IRAs are for tax-free flexibility. Annuities are for guaranteed income. Together, they’re powerful.

What’s the biggest risk in retirement?

Running out of money. That’s why guaranteed income (from an annuity) and tax-smart withdrawals (from a Roth) are essential.

Can I have a Roth IRA and an annuity?

Absolutely — and we recommend it! Using both gives you control and security. It’s like having a checking and savings account for retirement — both matter.

Ready to Build a Retirement Income Plan That Actually Works?

At Gruene Insurance Group, we’ve helped hundreds of families from Seguin to New Braunfels figure out the smartest, simplest way to make their money last.

We’ll walk you through:

  • Whether a Roth IRA makes sense (even if you have a 401k)

  • What kind of annuity might fit your goals

  • How to mix both for a plan that feels safe and stress-free

📞 Contact us today for a no-pressure retirement income review. Let’s build a plan that works for your life, not just your portfolio.

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