"There's a reason so many retirees appreciate having Social Security. Those benefits not only provide steady, reliable income, but they're also guaranteed for life. The same can't be said for your IRA or 401(k). Granted, you can do what you can to try to stretch your savings as long as possible, such as invest the money wisely and implement a smart strategy for withdrawals. But even then, there's still a risk that you'll outlive your savings."
"If you don't like the sound of that, you may want to set yourself up with another income stream that's similar to Social Security in terms of guaranteed payments. An annuity could be the perfect solution, so it's important to look into one if you're worried about running out of money and want predictable cash flow later in life. Social Security won't cover all of your bills Social Security can serve as a nice foundation for retirees."
Social Security delivers steady, guaranteed monthly benefits but typically replaces only about 40% of pre-retirement wages. The average retired worker receives a little more than $2,000 per month, roughly $24,000 per year, which often falls short of total retirement needs. Healthcare and some other expenses frequently increase in retirement, and leisure time can raise discretionary spending. IRAs and 401(k)s can help close income gaps but carry the risk of depletion. Annuities provide guaranteed lifetime payments and predictable cash flow, helping minimize longevity risk and complement Social Security and retirement savings.
Read at 24/7 Wall St.
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