This article is produced in partnership with Symetra
Earlier this summer, your clients may have read alarming headlines that “Social Security will go broke” even earlier than expected.[i] These alarming headlines are only part of the story, but they may feel like the only story to clients who are looking for reassurance about their financial future and not a doomsday prediction.
Social Security payments will continue as long as workers pay into the system. If Congress fails to reinforce the Social Security Old-Age and Survivors Insurance trust fund prior to 2033, benefits will continue but will be reduced by 23%.[ii] Congress has eight years to address the current shortfall, and there are multiple solutions available, so the doomsday prediction of the headlines may be a bit dramatic.
Social Security benefits have been the foundation of retirement income planning since the first checks went out in 1940.[iii] Your pre-retiree clients likely understand their future financial security shouldn’t rely solely on Social Security alone, but instead on a combination of other reliable, guaranteed income sources. With “certain uncertainties” like inflation and longer lifespans, they may need more than one option to help address any potential income gaps and last through retirement.
For some clients, the safer, the better as far as investing goes. And for others, future uncertainty is a concern they want to tackle head-on, while protecting what they’ve already earned. When considering a client’s need for guaranteed income, there are a number of solutions that can help ensure retirement success while still accommodating their low risk tolerance.
Social Security Old Age and Survivors Benefits:
For nearly every U.S. worker, these benefits will make up some, if not all, their guaranteed retirement income.[iv] Although adjusted for cost of living, this benefit may still not cover every necessary expense in retirement.
Defined-benefit pensions:
Fewer and fewer working Americans will have employer-sponsored pension plans available for their retirement needs. With the expenses and regulations associated with maintaining a pension plan, most employers are moving to defined contribution plans, like 401(k)s and 403(b)s. Although there are limited guarantees in place for private plans, insolvency has been an issue for both public and private plans.[v]
Certificates of Deposit (CDs):
Insured by the FDIC, they provide security, but may not be able to offset inflation and protect purchasing power if their rates of return are lower than the rate of inflation.[vi]
Annuities:
Clients might not realize that annuities aren’t “just” a paycheck in retirement. A fixed-indexed annuity (FIA) can provide guaranteed income for life with the added benefit of potential growth to help offset inflation and maintain purchasing power. Because FIAs are linked to market indexes, they can typically provide greater growth opportunities based on market conditions than other income solutions.
Your clients may be more open to an annuity conversation than you realize, especially when they get to know the flexibility and the features. Introducing multiple options to create a pool of guaranteed income can help them feel they are prepared for their futures.
Headline news can be exciting to follow, but it can also stir up emotional reactions that may lead us to do things we regret later—like snap investment decisions. Wall Street Journal veteran Dave Kansas looks at the markets through the lens of behavioral finance and helps put uncertainty into perspective for you and your clients.
Annuities are issued by Symetra Life Insurance Company, 777 108th Ave NE, Suite 1200, Bellevue, WA 98004. Products are not available in all U.S. states or any U.S. territory. Terms and conditions may vary.
The instruments certificate of deposits are not offered, sold or endorsed by Symetra Life Insurance Company. Investments such as CDs have different objectives, risk tolerance levels and time horizons than index and fixed annuities.
Individuals should consult their financial professional or agent regarding their individual situation when comparing these instruments to annuities.
This material is not intended to provide investment, tax or legal advice.
SOURCES
[i] Medicare and Social Security go-broke dates pushed up due to rising health care costs, new SSA law (accessed July 1, 2025)
[ii] 2025 OASDI Trustees Report (accessed July 2, 2025)
[iii] Social Security FAQs (ssa.gov) (accessed July 1, 2025)
[iv] Retirement Benefits (ssa.gov) (accessed July 1, 2025)
[v] This agency tries to preserve pensions for millions of people (accessed July 1, 2023)
[vi] Can You Lose Money with a CD? (accessed July 1, 2025)
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