Take Control: Social Security Won’t Disappear, But Cuts are Coming
Scenario
You’re paying into Social Security or collecting benefits. You’ve heard rumors it’s going broke. You’re wondering: Will it really be there for me? The answer: Social Security is not going away, but your future benefits could be cut by 17% or more starting in 2035 unless Congress acts. That’s according to the Social Security Trustees’ latest report. You need a backup plan.
Strategies to Secure Your Financial Future
1. Use Annuities to Create Your Own Guaranteed Lifetime Income
Key stat: Up to 17% cuts projected to Social Security benefits by 2035.
An annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) can replace the income Social Security may no longer fully cover. These annuities pay you a monthly income that never runs out—even if the annuity does.
- Predictable income for life
- Income continues even after your annuity value reaches $0
- Can be deferred to maximize payout
- Less liquid than savings accounts
- May include fees depending on the type
Who Needs It: Pre-retirees in their 50s or 60s who want to lock in income before cuts hit.
Who Doesn’t: People already fully retired and fully reliant on Social Security, without assets to convert into annuity income.
Helpful Add-on: Combine with a QLAC (Qualified Longevity Annuity Contract) inside your IRA to reduce RMDs and protect against outliving your money.
2. Add Life Insurance for Survivors if Social Security Survivor Benefits Shrink
Key stat: Survivor benefits may drop if the Social Security trust fund runs low.
Permanent life insurance (whole or universal life) ensures your spouse or children aren’t left vulnerable. It pays out even if Social Security’s survivor benefit is reduced—or disappears.
- Tax-free lump sum to beneficiaries
- Optional cash value to borrow in retirement
- Premiums can be fixed for life
- Can be expensive if bought later in life
- Health issues may limit your options
Who Needs It: Married couples, single parents, or anyone with dependents relying on survivor income.
Who Doesn’t: Individuals with no dependents or sufficient assets to self-insure.
Also Consider: Joint life insurance policies to cover two people affordably with one payout.
3. Prepare for Medical Costs With Long-Term Care or Disability Insurance
Key stat: Most Americans will need long-term care, but Medicare and Social Security Disability Insurance (SSDI) face funding issues.
If you become disabled or need care in old age, don’t count on government programs alone. These policies can prevent you from draining your savings—or forcing a family member to become a caregiver.
- Pays for in-home care, nursing homes, or assisted living
- Disability coverage replaces lost income before retirement
- Protects assets you’ve earmarked for retirement
- Long-term care policies can be costly if you wait too long
- Disability coverage often ends at age 65
Who Needs It: Adults over 50 planning to age at home or protect their spouse from future caregiving costs.
Who Doesn’t: People with minimal assets who may qualify for Medicaid by default.
Helpful Add-on: Long-term care riders on life insurance or annuities.
Don’t Wait for Washington to Fix Social Security
Congress may eventually pass reforms like raising taxes, increasing the retirement age, or reducing cost-of-living adjustments—but there’s no guarantee. Build your own safety net now. Contact The Annuity Expert’s financial advisors and insurance agents for free quotes and a no-obligation consultation. We’ll compare annuities, life insurance, and other strategies to protect your retirement—even if Social Security pays you less.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.