If you’re nearing retirement and wondering what will happen to your Social Security benefits, you’re not alone.
As a result, many Utah families are now seeking alternative sources of income during retirement.
It’s hard to trust that Social Security will provide for you in retirement, especially when it’s projected to run out of funds to maintain current benefit levels within a decade. And unless Congress acts quickly to help, monthly benefits could be slashed, leaving you with much less than you expected when you retire.
Social Security benefits only cover a portion of your income.
–Social Security Administration
“This is frustrating because it doesn’t matter how much money you’ve contributed to Social Security. Once the money’s gone, it’s gone. At that point, they can only pay their benefits with their newly earned money. So this can cause problems in the middle of retirement,” explains Tyson Thacker, CEO of BOSS Retirement Solutions.
Even if benefits aren’t cut, it may not be enough. Social Security Administration Report“Social Security benefits only cover a portion of your income.”
Note the use of the word “partial.” This program is not meant to fund your retirement dreams. It is meant only to keep Americans out of poverty.
And it is falling behind in that mission too.
Since 2000, inflation has reduced the purchasing power of Social Security benefits by 36%.
–CNN article, April 28, 2024
Yes, I will receive regular Social Security benefits.”Cost of Living Adjustments” is apparently meant to protect you against inflation.
but, CNN article Earlier this year, a report said the government isn’t doing a very good job, explaining that “an analysis last year by the League for Senior Citizens found that inflation has reduced the purchasing power of Social Security benefits by 36 percent since 2000.”
Even if you’re not still receiving Social Security, you’re probably struggling. Your hard-earned money isn’t as available to spend as it used to be, and you need more income to make ends meet.
This is forcing many Utah families to make an important decision…
They are realizing that they can’t rely solely on Social Security for their retirement income, so they must look for alternatives.
“The great thing about Social Security is that it’s a type of contractual income — you get a set amount of money every month for the rest of your life. If it works out, this steady income can represent a sense of security and financial confidence in retirement,” says Ryan Thacker, president of BOSS Retirement Solutions.
No one wants to be 80 years old and still be full of energy but with no money.
–Ryan Thacker, BOSS Retirement Solutions
“No one wants to be 80 years old and still be going strong but with no money. People are much happier having multiple streams of regular, monthly income for the rest of their lives,” Tucker explains.
Unfortunately, many families struggle to find an adequate alternative or supplement to Social Security.
While other sources of income have their advantages, they often have insurmountable drawbacks.
So-called safe income sources like CDs, Treasuries and bonds only offer high yields when interest rates are high. But when interest rates fall, those yields can plummet.
Chasing income in the stock market exposes your retirement savings to market fluctuations and makes you more vulnerable to the inevitable stock market crash.
And investing in real estate often doesn’t live up to expectations when you consider the hassle of tenants, maintenance, property taxes, and other expenses.
But there’s another reliable source of retirement income that many Utah retirees are now reconsidering, despite its sometimes bad press: annuities.
“Annuities are at an all-time high because they provide a guaranteed contractual income stream for life. If you choose the right annuity, you’ll never run out of money in retirement. Plus, it never hurts to diversify some of your savings with the stock market,” says Tyson Thacker.
Even Barron’s, one of the most trusted financial media companies, called annuities a “hot investment” this year. In the article By Karen Hube.
The Barron’s article explains that “annuity payments and guaranteed income are at their highest in more than a decade,” and that investors are “securing pensions at an unprecedented pace.”
With the right pension, you won’t have to worry about running out of money when you retire.
–Tyson Thacker, BOSS Retirement Solutions
Like everything else in life, there are good and bad pensions.
Certain annuities can be a good financial decision. An annuity is a type of contracted income for life, in addition to your Social Security benefits. And unlike Social Security, an annuity can provide money to your family after you pass away, even if you die before reaching a certain payout threshold.
“It’s not uncommon for us to look at hundreds of different pension products for our clients, and then we only recommend one or two of the best options,” Ryan Thacker says.
The key is understanding whether an annuity is right for you. A trusted financial advisor can help you determine whether an annuity could be a smart source of extra income to support you in retirement – and, if so, what type of annuity is best for you.
BOSS Retirement Solutions is one of the best-known financial planning firms in the greater Salt Lake City area, with six offices across the Wasatch Front.
BOSS Retirement Solutions offers a free, customized retirement income analysis to help you achieve your retirement income goals.
The purpose of this analysis is to help you understand what income sources are available to you in retirement and how to make the most of each one.
This includes helping you make the most of your Social Security benefits, determining if annuities make sense for you, creating a withdrawal plan from your IRA or 401K, protecting your retirement income from excessive taxation, and generally helping you get more out of your assets in retirement.
While many advisors charge thousands of dollars for customized retirement income plans, BOSS Retirement Solutions is offering KSL.com readers a limited number of free retirement income analysis appointments.
you can Request a Retirement Income Analysis Onlineor call (801) 990-5055.
Tyson Thacker and Ryan Thacker are the CEO and President of BOSS Retirement Solutions, a five-time Utah Best of State Award winner with six offices across the Wasatch Front.
Advisory services offered through BOSS Retirement Advisors, an SEC registered investment adviser. Insurance products and services offered through BOSS Retirement Solutions. The information contained in this material is for informational purposes only, and no statements contained herein constitute tax, legal, or investment advice. This information is not intended to be used as the sole basis for financial decisions, and should not be construed as advice designed to meet any individual’s particular needs. Consult an independent attorney or tax advisor for legal and tax questions. BOSS is not affiliated with the U.S. government or any government agency. Marketing materials are provided by Infinity Marketing Services. BOSS submitted an application and paid a fee to be considered for the Best of Utah awards. Results were determined independently by the awarding organization (https://www.bestofstate.org/about.html) and information provided by BOSS, BOSS was named Utah’s Best in 2019, 2020, 2021, 2022 and 2023.
