"Social Security serves as a financial lifeline for millions of retired Americans. And even if you manage to save a decent chunk of money for your senior years, you might rely heavily on Social Security for one big reason - the fact that those benefits are guaranteed for as long as you're alive. You could kick off retirement with $2 or $3 million in savings only to have that money run out on you in your lifetime."
"Social Security, on the other hand, can't run out on you. And yes, you've probably heard rumors that Social Security is going away, but that's not true. Social Security gets funded by taxing wages, so as long as there are people working, money to pay benefits will keep coming in. For this reason, it's fair to count on Social Security as a guaranteed monthly income source once your career wraps up."
Social Security provides guaranteed lifetime benefits funded by taxing wages and serves as a reliable monthly income once a career ends. Even substantial retirement savings can run out during a lifetime despite smart withdrawal strategies. Low-risk investments such as Treasury bonds and CDs can offer predictable payments but may not generate sufficient income. An annuity can supplement Social Security by providing income for the rest of a retiree's life, thereby reducing the risk of outliving savings. An annuity typically involves paying an insurance company money, often as a lump sum.
Read at 24/7 Wall St.
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