Annuities have remained controversial for the longest time possible. Many could claim they are the best compared to other insurance products but they are not for everyone. They come in many different versions either in a single form on in a series. They can be fixed or variable depending on your financial situation. Their major appeal is in giving you protection against outliving your money.
But even then Social Security with a registration of more than 60 million Americans has monthly payments for retirees. They receive important financial benefits, which they require for survival. This the primary difference between annuities and Social Security.
However, there is a proposal citing a need for Social Security to start selling annuities. There is a link between the proposal and the longevity risk, which goes hand in hand with life expectancies. There is also the reasoning that people cannot accumulate enough saving for their type of conventional retirement. This describes the reason why Social Security should provide a lifetime means of earning and which retirement savers can easily rely on. This is in addition to the fact that it has already done the most necessary work of determining the right payouts.
The federal government may be in a position to start selling annuities. Nonetheless, the proposal has come under heavy criticism. The argument is that Social Security is already straining with the monthly payments, thus the program could be an additional strain. Another notable concern is the fact that the concept is likely to benefit healthiest people more than those who literally need it.
That said private insurance companies have come out blazing citing that they are in a better position to work with the proposal. Apparently, most of the retirees feel safer with the option of diverting their monies to Social Security than anywhere else. This gives them the opportunity to continue boosting their monthly payments even into their retirement age of 70years.
Meanwhile, whether or not the Social Security will buy the idea of selling annuities remains a concluded proposal and only time will define the right path.
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