When Social Security May Not Be Enough

August 9, 2021

Would you like to maintain your current standard of living throughout your retirement?

Is social security enough?

When and where to put your money are important factors to ensure you have a consistent stream of income when you retire. Many people rely on social security benefits and want to start collecting them as soon as possible, but there are some consequences for beginning benefits at age 62.[1] Choosing what age you want to start receiving benefits will affect the retirement income (the monthly benefit) you receive for the rest of your life.

So now what are you supposed to do?

There are many strategies, outside of choosing when to start receiving your social security benefits, on how to maximize your retirement earnings. A financial planner* can help determine the best strategy based on your current situation and personal goals; protecting your hard-earned income should be a part of your strategy. Annuities are a great solution to supplement your Social Security benefits so that you can live your best life during retirement.

Annuities may sound complicated, but they really are quite simple when you break down the features. Fixed annuities are an attractive option whereas the interest rate and income stream are guaranteed over a specific timeframe on a tax-deferred basis. Fixed annuities can be broken down into two simple types: Deferred and Immediate.

Deferred Annuity: A deferred annuity will delay payments until you choose to receive them, which would typically be once you actually retire. During the savings phase, you would put money into the account, and during the income phase, the plan would begin relinquishing your payouts, or “paychecks”.

Immediate Annuity: Immediate annuities are best for those already in or close to retirement because they offer guaranteed income for life or a set period of time. This kind of annuity is designed to start paying income as soon as you start the policy.

The great thing about either one of these types of annuities is that it is a low risk AND guaranteed option. (4) It typically earns more interest than a bank Certificate of Deposit (CD).

1. Age 62 is the earliest age at which you can start Social Security benefits based on your own earnings record. Source: Social Security Administration www.ssa.gov. 2. SOURCE: Thinkadvisor.com. 3. Source: Social Security Administration www.ssa.gov. 4. Guarantee relies on the financial strength and claims paying ability of KSKJ Life. *We are not tax advisors or financial planners. KSKJ Life does not provide investment advice and this material is not intended to provide investment advice. Not FDIC insured