Estimated read time: 6-7 minutes
If you're retiring soon and wondering what will happen with your Social Security benefits, you're not alone.
That's why many Utah families are now seeking alternative income sources for retirement.
It's hard to trust Social Security will be there for you in retirement, especially when it is projected to run short of money needed to maintain current benefit levels in less than 10 years. And if Congress doesn't do something to save it soon, monthly benefits could be significantly reduced – leaving you with a lot less money than you were counting on for retirement.
Social Security benefits only replace some of your earnings.
–The Social Security Administration
"This is frustrating. It doesn't matter how much money you've contributed to Social Security. When the money's gone, it's gone. At that point, they're only allowed to pay benefits with new money they bring in. So, this could spell trouble right in the middle of your retirement," explains CEO, Tyson Thacker, of B.O.S.S. Retirement Solutions.
Even if benefits don't get cut, they may not be enough. The Social Security Administration reports, "Social Security benefits only replace some of your earnings."
Note the use of the word "some." The program wasn't meant to fund your retirement dreams. It was only meant to keep Americans out of destitution.
And it's even falling behind on that mission.
Inflation has eaten away at 36% of Social Security benefits' buying power since 2000.
–CNN article, April 28, 2024
Yes, Social Security benefits get regular "Cost of Living Adjustments," which are supposed to protect you from inflation.
But a CNN article earlier this year reports that they're not doing a very good job of it. They explain, "Inflation has eaten away at 36% of Social Security benefits' buying power since 2000, according to an analysis last year from The Senior Citizens League."
Even if you're not on Social Security yet, you're probably feeling the pinch. Your hard-earned money doesn't go as far as it used to. And you need even more income just to make ends meet.
This is inspiring many Utah families to make an important decision…
They're realizing they can't rely on Social Security alone for their retirement income. So they must search for alternatives.
"One beautiful thing about Social Security is that it's a form of contractual income. You get a certain amount of money every single month – for the rest of your life. When it works, reliable income like this can represent security and financial confidence in retirement," says Ryan Thacker, president of B.O.S.S. Retirement Solutions.
The last thing you want to be is 80 years old, full of life and flat broke.
–Ryan Thacker, B.O.S.S. Retirement Solutions
"The last thing you want is to be 80 years old, full of life, and flat-broke. You'll be far better off if you have a number of different sources of income coming in every month, like clockwork, for the rest of your life," Thacker explains.
Unfortunately, many families have struggled to find a suitable alternative or supplement to Social Security.
While other income sources have their benefits, they often have insurmountable downsides, too.
So-called safe income sources, including CDs, treasuries and bonds only pay well when interest rates are high. But these payouts could plummet when rates drop.
Chasing income in the stock market exposes your retirement savings to market volatility – and are vulnerable to inevitable stock market crashes.
And investing in real estate is often not what it's cracked up to be, between hassles with tenants, maintenance, property taxes, and other expenses.
But there's another potential trusted source of retirement income that many Utah retirees are taking a second look at today, even if it sometimes gets a bad wrap. And that source is annuities.
"Annuities are enjoying record-breaking popularity, because they provide a guaranteed source of contractual income, for the rest of your life. And with the right annuity, you can be confident you'll never run out of money in retirement. Plus, it wouldn't hurt to have a portion of your savings diversified from 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 an article by Karen Hube.
The Barron's article explains, "Annuity payouts and guaranteed income are the highest they've been in more than a dozen years." And investors "are locking in annuities at an unprecedented rate."
With the right annuity, you can be confident you'll never run out of money in retirement.
–Tyson Thacker, B.O.S.S. Retirement Solutions
Just like everything else in life, there are good and bad annuities.
Certain annuities can be an excellent financial decision. They are a form of lifetime contractual income, on top of your Social Security benefits. And unlike Social Security, if you pass away before certain payout thresholds, they could provide your family with money after you're gone.
"It's not uncommon for us to review hundreds of different annuities for a client. And we only suggest one or two of the very best options," Ryan Thacker says.
The key is to understand if they might work for you. A trustworthy financial advisor can help you decide if annuities would be a smart additional income stream to support you in retirement. And if so, to figure out what kind of annuity is best for you.
B.O.S.S. Retirement Solutions is one of the most recognized names in financial planning in the greater Salt Lake City area, with six offices located throughout the Wasatch Front.
To help you achieve your retirement income goals, B.O.S.S. Retirement Solutions provides a free, customized Retirement Income Analysis.
The goal of this analysis is to help you understand what retirement income streams may be available to you, and how to make the most of each.
This includes: helping you make the most of your Social Security benefits, determining how annuities may or may not make sense for you, developing a plan for taking withdrawals from your IRA or 401K, protecting your retirement income from over-taxation, and generally helping you make every dollar go further in retirement.
While many advisors may charge thousands of dollars for a customized retirement income plan, B.O.S.S. Retirement Solutions is offering a limited number of these Retirement Income Analysis appointments free of charge, to KSL.com readers.
You can request your Retirement Income Analysis online, or call (801) 990-5055.
Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are a five-time winner of Utah's Best of State Award and have six offices located throughout the Wasatch Front.
Advisory services offered through B.O.S.S. Retirement Advisors, an SEC-Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. Information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of any individual. You should seek advice on legal and tax questions from an independent attorney or tax advisor. B.O.S.S. is not affiliated with the U.S. government or any government agency. Marketing materials provided by Infinity Marketing Services. B.O.S.S. submitted applications and paid fees to be considered for the Utah Best of Utah awards. Results were independently determined by the awarding organization (https://www.bestofstate.org/about.html) and the information B.O.S.S. provided. B.O.S.S. received the Utah Best of State award in 2019, 2020, 2021, 2022, and 2023.
