A new survey conducted right after the Nov. 3 presidential election found most Americans think Social Security would have to be in immediate crisis before Congress will step up to “fix” it.
PlanGap, an Atlanta-based “product innovation company” introducing what it calls “a new class of retirement insurance solutions,” recently released the results of the survey of over 2,000 U.S. adults conducted online by The Harris Poll. The survey found that 74% of Americans believe Social Security would have to be in immediate crisis (e.g., the trust fund would become insolvent) for Congress to attempt to fix the program.
Those ages 35-to-44 and 65-and-over are particularly pessimistic, with nearly four in five (79% each) agreeing that Social Security would need to be in crisis before a fix is attempted. More than half of Americans (51%) do not believe Congress wants to fix Social Security. This negative outlook is especially prevalent among those nearing retirement age. Three in five (60%) of those ages 55 to 64 do not believe Congress wants to fix Social Security.
“By an overwhelming majority, Americans agree that the single most important source of retirement income for millions of their fellow citizens will basically have to be insolvent before an effort is made to solve this inevitable problem,” said David Duley, founder and CEO of PlanGap. “Nobody knows whether the solution will include benefit cuts when the crisis arrives, which is why people need to start planning now.”
The survey gave participants an opportunity for respondents to vent some anger in asking whether they think Congress’ retirement benefits should be suspended until Social Security is “fixed.” Nearly three quarters of Americans (73%) said indeed they should be suspended, and for those ages 45 to 54, more than three quarters (78%) agreed.
As an apparent impetus for the survey, PlanGap recently launched a Social Security-focused annuity, the first in what the company says is a series of “trigger-based” annuity and life insurance solutions that address fundamental financial issues for Americans. In the event of a government reduction to monthly Social Security benefit payments, the PlanGap Annuity pays policyholders a bonus based upon the duration and initial amount placed into the contract. This “PlanGap Bonus” escalates over time and caps at 30% of the initial annuity value.
“Before, there was nothing Americans could do about the future of Social Security and how it might impact them,” Duley said. “Now, thanks to innovations in the insurance industry, people are waking up to the reality they can actually take back control. There’s a silver lining now that didn’t previously exist.”
The PlanGap annuities are currently available in 18 states and the District of Columbia, with more states expected in the near future.
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