Should You Insure Against Social Security Going Bust? - AMAC & Yahoo Finance
The yearly release of the Social Security Trustees reports always comes with a flurry of articles and financial expert advice, and 2021 was no different. This piece by Mike Obel of Yahoo Finance cites the Nationwide Retirement Institute’s 2021 Social Security Survey that notes 71% of people worry the 86-year-old program will run out of funding in their lifetimes. Also, a considerable percentage of Millennials and Gen X-ers believe they will never get a dime from it. Many experts dismiss these worries because they feel Congress will step in to rescue Social Security, given its broad bipartisan support. Nonetheless a company called Annexus has a different solution. Annexus is a large distributor of fixed indexed annuities and indexed universal life insurance policies. This month they announced the addition of an income-disruption rider to its fixed indexed annuities that will pay clients if their Social Security benefit is reduced.
“The newly released 2021 Social Security Trustees Report highlights the dire condition of the Social Security Trust Fund and the need for a better solution as funds continue to deteriorate,” said the company, which is partnering on the initiative with retirement firm PlanGap, an affiliate of The Secure Companies Inc. of Atlanta. Annexus plans to announce insurance carrier and investment bank partners and launch this fixed indexed annuity in early fourth quarter 2021.
Obel still believes fears of Social Security going away are unfounded, but read his interesting piece here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.