Many individuals start taking Social Security as soon as they retire. For some, that makes sense, but for others, waiting just a little longer could pay off in a big way. Filing early can shrink your monthly benefit by up to 30% and once it’s reduced, it’s reduced for good. By waiting, not only do you lock in a higher monthly payment, but you also benefit from built-in inflation protection and more favorable tax treatment, since Social Security is never taxed in full.
If you’re thinking about delaying, you might wonder how to cover expenses in the meantime. One option is to pull a bit more from your savings temporarily. Another is to look at annuities. These can provide a steady, guaranteed income, and help protect against market swings and the risk of outliving your money.
Annuities have been getting a lot more attention lately, especially inside employer retirement plans. Thanks to the SECURE Act and SECURE 2.0, it’s now easier than ever for workers to access annuity options through their 401(k), 403(b), or 457 plans. With people living longer and worries about the future of Social Security growing, more plan sponsors are looking for ways to offer lifetime income solutions.
That shift is already happening. A recent study from TIAA found that over three-quarters of defined contribution plan sponsors expect demand for annuities to surge by 2030. Many are already adding them as investment options—or even making them the default choice. In-plan annuities can be a great fit for employees who might not have outside savings or a financial advisor to guide them. They’re typically simpler, more affordable, and built right into the workplace plan.
Retirement planning is more complex than it used to be. Pensions are rare, markets are unpredictable, and inflation is always lurking. But with tools like annuities and smart decisions around Social Security, there’s a way to build a more stable, reliable income for the long haul. Have questions about how annuities work for your clients? Reach out to our Annuity Team at Wholehan Marketing to see what options are available for your client!