Social Security and Annuities have a lot in common but are also incredibly different retirement income streams and tools.
Seven Commonly Asked Questions about Social Security and annuities are:
- Does annuity income affect Social Security?
- Should you buy an annuity from Social Security?
- Are annuities considered income by Social Security?
- Can someone collect an annuity and still get Social Security?
- Are there different types of annuities that work well with Social Security?
- Can I use an annuity to delay taking Social Security?
We have answers to these questions:
- Annuity income can affect your Social Security benefits depending on the type of annuity and your individual circumstances. Social Security benefits are based on your earnings history and the age at which you start receiving benefits.
- Social Security is not an annuity but provides annuity-like income through the retirement benefits it provides to eligible individuals. Social Security retirement benefits are a government-backed income stream the claimant can receive as early as age 62.
- Annuities are considered as a source of income by Social Security and can potentially affect your Social Security benefits. However, the treatment of annuities depends on the type of annuity owned and how it is structured.
- The collection of an annuity does not directly impact a person’s eligibility to receive Social Security benefits. Social Security benefits are generally not affected by other sources of retirement income, such as annuities, pensions, or investment income.
- Different types of annuities, such as fixed, variable, or indexed, can work in combination with Social Security. The annuity choice depends on your financial goals, risk tolerance, and income needs.
- Yes, an annuity can supplement the income while delaying taking Social Security benefits. This strategy can potentially result in higher Social Security benefits.
Where to find the experts on annuities?
What is the best way to decide what annuities are appropriate for your clients? Find out more about annuities and all their variations by calling EMG Insurance Brokerage. It is essential for advisors to access quality products, expert advice, and cost-effective solutions.
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