Annuities Can Mix With Social Security To Create Reliable Cash Flow for Your Retirement

Core Insights - Social Security provides a reliable income stream for retirees but does not cover all expenses, necessitating additional income sources like annuities [2][4][6] - Annuities offer guaranteed lifetime income, which can complement Social Security and help mitigate the risk of outliving savings [3][8][9] Group 1: Social Security Overview - Social Security benefits average a little over $2,000 per month, translating to just over $24,000 annually, which may not suffice for all retirement expenses [4] - It is estimated that Social Security replaces about 40% of pre-retirement wages for typical earners, indicating a potential income gap in retirement [6][8] Group 2: Annuities as a Solution - Annuities require an upfront payment to an insurance company but provide guaranteed income for life, reducing reliance on market performance [8][9] - Combining Social Security with annuities can create a more stable financial foundation for retirement, addressing the limitations of relying solely on Social Security [8]