"Most households … will have Social Security, and that lasts as long as you live. But most people don’t want to live just on Social Security," Walden says. "There’s also something called an immediate annuity. This is where you have accumulated a large amount of money, you turn that money over to an insurance company and, in turn, that insurance company guarantees you a monthly income for as long as you live.

"Now there’s a new concept called longevity insurance that also may help. Again, with longevity insurance you plunk down a large amount of money -- say you are age 65. In return you get guaranteed income but not right away. It does not start until you are age, say, 85.

"So what happens here is you are able to spend down your other assets but then make sure that you have income if you do reach those later years."