The is the first of a 3-part series on the future of Social Security and what you can do to offset its detrimental effects, by directing your retirement savings into fixed index annuities that will provide a stronger guaranteed lifetime income.

The Congressional Budget Office — a non-partisan group of auditors in Washington DC — re-released a report in early 2020, stating that the Medicare Hospital Insurance fund would be insolvent by 2024, and the Social Security Disability fund would be insolvent by 2026… with the general fund depleting just prior to 2030.

Social Security began in 1935 under the FDR administration, and following the Great Depression, was a way to assure people would have some money for retirement. It was never intended to be the sole source of retirement. President Roosevelt was quoted to having stated, “We have tried to Frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”

However, right out of the gate, that program was structured to fail. The age to draw Social Security was set at age 65; however, the average lifespan of a male in 1935 was only 58, and a female life expectancy was only 62. So what can you deduce from that? The government was obviously betting that most would never live long enough to draw benefits from the program. That’s right, the government established a program that they knew — at the time — was beyond the life expectancy of most Americans. Collecting taxes from those Americans who, most likely, would not live long enough to draw benefits.

By 1960, Americans were receiving about $6 in benefits for every dollar paid in. Today, Americans are only receiving 93-cents for every dollar paid into Social Security. In another 10-years, that amount is expected to decrease to about 82-cents for every dollar.

You need to take control of your retirement savings and begin assuming Social Security will not be there at some point. Create your own guaranteed lifetime income flow through a fixed index annuity that will certainly pay higher than 93-cents on the dollar.

As you approach retirement, consider transferring financial assets from 401(k) plans, IRAs, 403(b) plans, and 457 plans over to annuities that will provide market growth and protect you from market losses. Your annuity principal is guaranteed against market losses, benefits bypass probate, and the remaining account balance at death is paid out to your beneficiaries.