The Case for Annuities: Social Security Woes

Annuities Warranted?

Here’s a somewhat scary situation…

Social Security tax receipts are projected to drop by $110 billion in 2011 compared to 2010, largely due to the 2% reduction (from 6.2% to 4.2%) of the employee Social Security payroll tax rate that was effective for calendar year 2011. While on the surface we all applaud lower tax rates and less money being deducted out of our paychecks, this situation doesn’t bode well for the future of Social Security.

In addition, the 2012 proposal, which was debated by Congress last week, would further reduce the employee payroll tax rate to 3.1% (instead of reverting back to 6.2% as it is currently scheduled to do) and the employer payroll tax rate is also proposed to be cut to 3.1% on the first $5 million of payroll, Social Security payroll tax receipts would drop by $265 billion next year.  (source: Social Security).

It has been well publicized for years now that Social Security may run out of funds long before the “thirty somethings” of today reach retirement age.  While this fact remains to be seen, the truth of the matter is that Americans need to assume control of their financial future.  Annuities offer a risk free option of retirement savings with many benefits.

You can discover exactly what is an annuity by exploring the pages of this site and by registering for my free report today!

 

 

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