Qualified longevity annuity contracts have, in theory, existed for nearly three years, but it's only in recent months that insurance carriers have begun to offer these products — finally making the QLAC a realistic planning option.

While the purpose behind the QLAC is relatively simple — providing income guarantees late in a client's life — in reality, this new planning vehicle can reshape the client's entire retirement income planning strategy.

QLACs won't replace Social Security as the primary source of retirement income for many clients but, for the higher income client, the introduction of QLACs into the planning mix can drastically alter even the most basic Social Security strategies, including the typical plan for maximizing retirement income by delaying benefits.