Worried Social Security Won’t Be Enough? Here’s a Strategy to Look At

Core Insights - Many pre-retirees and current retirees fear running out of money too soon, which is a valid concern given the general trend of insufficient retirement savings among Americans [2][7] - Social Security benefits only replace about 40% of pre-retirement income, which is inadequate for maintaining living standards, especially with rising healthcare costs as individuals age [2][6][7] Retirement Funding Strategies - One potential strategy for funding retirement is purchasing an annuity, which can provide a stable income and reduce reliance on stock market performance [4][5] - Annuities grow on a tax-deferred basis, allowing for increased savings without immediate tax liabilities until withdrawals begin [5] - Annuities can offer lifetime income guarantees, making them a suitable supplement to Social Security and providing a reliable source of income throughout retirement [6][7]