Social Security and Annuities

June 28, 2021

One of the most important areas that need to be considered on the success of your retirement is having enough funds. When you stop working and receiving a regular income you want to be able to maintain your lifestyle. How do you accomplish this important fact, and what strategies are necessary to sustain and thrive in retirement? The answer for many is Social Security and Annuities.

Social Security is a primary leg of that retirement as well as private annuities. Social Security is a right that is earned based on working history and earning enough credits to receive an income when you ultimately retire. By having a guaranteed payment from Social Security, it is also advisable to have an annuity that will also provide a parallel guaranteed income as well. Taking into consideration what age you stop working, will be a huge determining factor in the actual Social Security benefit that you receive, as well as potential tax liabilities on your Social Security benefit when you start receiving Social Security. By planning your own personal Social Security maximization strategy, an annuity can help cater and provide the income necessary to truly provide for your specific retirement income strategy.

It is important to work with a professional that understands all the rules of Social Security and when your personal maximization strategy is. Determining your optimal claiming strategy for Social Security will lead to a more comfortable retirement. There are many strategies that can be employed, and the use of a guaranteed lifetime annuity can offer that additional income to complement your Social Security payments. The idea, and the importance of having multiple sources of guaranteed lifetime income, will be the strategy that can’t eliminate all pitfalls for a successful retirement, but it will alleviate some stress from the retiree, by providing something similar to a consistent paycheck like they had when they were working. The topic of Social Security, and the addition of the annuity option to this overall planning, as well as the consideration of other options to create income during retirement, are all now the most important considerations for a pre-retiree, and retired individual to consider moving forward. The common studies now show on average that a man 65 will live 20 years in retirement, and a female age 65 will live 22 years in retirement. Costs of healthcare, basic living expenses, and other unplanned expenses, will require funds to pay for them, and calculating your foundational income sources is of the utmost importance. Many different calculators are available to help you plan, but having a trusted advisor to assist you with these topics and plan for them accordingly.

At Pinnacle Financial we can assist you with the actual Social Security Maximization Strategies, as well as making recommendations with guaranteed lifetime income annuities to help supplement the Social Security income to have a successful and stress-free retirement. This is probably the most important planning that you can do with a client to make sure that your clients can be informed and comfortable when they finally stop full-time work and transition to retirement. Pinnacle Financial is here to help you with this and is an expert with this planning.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Will Torrance

Will Torrance

Senior Sales Director | Life, Annuity, & LTC

x7790 | wtorrance@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881


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