With Social Security Cuts Looming, Here's How to Supplement Those Benefits With Guaranteed Income

"In the coming years, Social Security won't have enough money to keep up with scheduled benefits unless lawmakers make changes that allow the program to boost its revenue. Those changes could involve additional taxes on wages or changes to the program's full retirement age. If lawmakers do not manage to find a way to prevent Social Security cuts, benefits may be slashed as early as 2033."

"But once both funds are depleted, retirement benefits may be reduced broadly by 19%. If the idea of Social Security cuts sounds scary to you, one solution is to save well for retirement to compensate. But the money in your retirement portfolio is, unfortunately, not guaranteed to last. The good news is that there's another option you can look at for guaranteed income on top of Social Security."

Social Security's Old-Age and Survivors Insurance trust fund is projected to be unable to pay full scheduled benefits as soon as 2033 unless lawmakers increase program revenue or change benefit rules. Potential fixes include higher payroll taxes or raising the full retirement age. Combining OASI with the Disability Insurance trust fund could delay cuts roughly one year but would still leave benefits broadly reduced by about 19% once both funds are depleted. Retirement savings are not guaranteed to last a lifetime. Annuities offer a guaranteed income option that can supplement Social Security and protect against outliving assets.

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