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September 2021 Annuity Rate Watch

A 6.1% Bump in Social Security?
COLA and Social Security.

The news keeps getting better for Social Security recipients.

It’s now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983. (1,2)

It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go into effect in January 2022.(3)

More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher costs. At the start of 2021, recipients saw a 1.3% increase.(4)

The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S. workers in 2021. (4,5)

Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive. If you have any questions, please reach out. We have a number of resources at our fingertips that you may find helpful.(6)

Every month we will provide a list of current Multi Year Guaranteed Annuity (MYGA) rates. The interest rate is guaranteed for the duration of the annuity. MYGAs provide safety and guarantees in retirement. If you have questions, please call us at 847-675-3600 and ask for Bill Eisen to connect you to an agent.

CD Rates are national averages taken from Bankrate.com and Yahoo Finance. All rates are time sensitive and subject to change.

MYGA-Stands for Multi Year Guarantee Annuity which means that the product is issued by an insurance company where the interest rate guarantee duration and early withdrawal fee terms match each other. For example; A 5 year Guaranteed Interest Rate would have a 5 year early withdrawal fee. At the end of the 5 year term there would normally be a 30 day window to move the funds to another account with no withdrawal fees. Check company approved materials for exact terms.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Fortune.com, July 15, 2021
2. SeniorsLeague.org, May 12, 2021
3. InvestmentNews.com, July 13, 2021
4. SSA.gov, June 2021
5. SHRM.org, June 2021
6. FinancialAdvisorIQ.com, July 19, 2021

by Debby Riskind

July 2021 Annuity Rate Watch

rates

A COLA with Your Social Security?
Preliminary estimates call for a 4.7% cost-of-living increase. [1]

If there is a “silver lining” to all the inflation talk, it may be that Social Security benefits are expected to see a larger-than-normal increase in 2022.

Preliminary estimates call for a 4.7% cost-of-living increase (COLA) in Social Security benefits next year, which would be the highest since 2009. Benefits rose 1.3% in 2021. [1]

The Social Security Administration makes its official announcement in January 2022. The Bureau of Labor Statistics bases its annual adjustment on the Bureau of Labor Statistics data in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W. [2]

A lot can change between now and January 2022, but remember that data from the third quarter of 2021 will be the basis for the COLA for next year.

In our experience, Social Security is one of the most misunderstood sources of retirement income. For example, only 33% of people in 2021 expected Social Security to be a major income source during retirement. In reality, it was a major source for 62% of retirees.[3]

Retirement may hold many surprises. But your sources of retirement income shouldn’t be one of them. It’s critical to have a strategy that keeps your expectations in line with reality. We’d welcome the chance to hear what you think about Social Security.

If you have questions please call us at 847-675-3600.

CD Rates are national averages taken from Bankrate.com and Yahoo Finance. All rates are time sensitive and subject to change.

MYGA-Stands for Multi Year Guarantee Annuity which means that the product is issued by an insurance company where the interest rate guarantee duration and early withdrawal fee terms match each other. For example; A 5 year Guaranteed Interest Rate would have a 5 year early withdrawal fee. At the end of the 5 year term there would normally be a 30 day window to move the funds to another account with no withdrawal fees. Check company approved materials for exact terms.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations
1. SeniorsLeague.org, May 12, 2021
2. CNBC.com, May 12, 2021
3. EBRI.org, 2021. “Retirement Confidence Survey”

by Debby Riskind

June 2021 Annuity Rate Watch

rates

GM Goldman & Associates

Will your retirement dreams match your reality?

That’s perhaps the most critical question to ask people who are currently retired. Was your retirement what you expected, or was it something else?

For more than 30 years, the Employee Benefit Research Institute (EBRI) has conducted the Retirement Confidence Survey, which gauges the views and attitudes of working-age and retired Americans regarding retirement and their preparations for retirement.1

Part of the survey takes a deep dive into workers’ expectations for sources of income in retirement versus retirees’ actual income sources.

Here’s a couple of highlights of the 2021 survey.

Only 33% of workers expect Social Security to be a significant source of retirement income. In reality, 62% of retirees say it’s a major source.

Further, more than 50% of workers believe that workplace retirement savings plans will be a significant source of retirement income. But the 2021 survey found that workplace plans are a major source for only 20% of retirees.

Surprised? We’re not. These numbers are consistent year after year. Here’s another nugget to consider: 26% of workers plan to work for pay in retirement. In reality, only 7% of retirees do.

For most, retirement is the “next chapter” in life. It’s critical that your finances support your retirement vision, so there are no surprises when it’s your turn.

Let us know if there’s a change in your retirement dream. We’d welcome the chance to hear what prompted the difference, and we’ll be sure to make any needed adjustments in your financial strategy.

GM Goldman Rate Watch

CD Rates are national averages taken from Bankrate.com and Yahoo Finance. All rates are time sensitive and subject to change.

MYGA-Stands for Multi Year Guarantee Annuity which means that the product is issued by an insurance company where the interest rate guarantee duration and early withdrawal fee terms match each other. For example; A 5 year Guaranteed Interest Rate would have a 5 year early withdrawal fee. At the end of the 5 year term there would normally be a 30 day window to move the funds to another account with no withdrawal fees. Check company approved materials for exact terms.

*This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations
1. Employee Benefit Research Institute, 2021 Retirement Confidence Survey

by Debby Riskind

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