Annexus, the independent product design and distribution company of fixed indexed annuities (FIAs) and indexed universal life insurance policies, and PlanGap, a “financial product innovation company pioneering Social Security protection,” announced a strategic partnership Tuesday.
The deal provides Annexus with exclusive rights to add a patent-pending PlanGap feature to its fixed indexed annuities that will provide a benefit to clients if their Social Security is reduced.The newly released 2021 Social Security Trustees Report highlights the dire condition of the Social Security Trust Fund and the need for a better solution as funds continue to deteriorate. By 2033, the payroll taxes collected are projected to pay only about 76% of scheduled benefits. Social Security Statements will note that benefit amounts may be reduced because of this projected funding shortfall.
“For many Americans, lifetime Social Security benefits represent their largest retirement asset,” said Don Dady, Annexus Co-Founder. “Benefits could be reduced by 24% in 2033. Clients insure their home, cars and other valuables in their life. We believe they will also want to protect their retirement from a reduction in Social Security benefits.”
“Clients insure their home, cars and other valuables in their life. We believe they will also want to protect their retirement from a reduction in Social Security benefits.”
Don Dady, Annexus
According to the most recent Social Security Confidence Survey (conducted after the 2021 Trustees Report was published), 7 out of 10 Americans age 45+ doubt they will receive full Social Security benefits as promised. And if the proposed reduction takes place, an average two-income household would receive $700less each month. The proposed solution from Annexus and PlanGap will help fill this income shortfall.
“We saw a critical planning opportunity for financial professionals without a viable solution in the market,” said Ron Shurts, Annexus Co-Founder. “Seventy percent of clients are saying they don’t believe they will receive full benefits. Through our new partnership with PlanGap, we will be providing a solution for financial advisors to help their clients in the event that Social Security benefits are reduced.”
“PlanGap is committed to partnering with market leaders to get our Social Security protection solutions into the hands of premier advisors and their clients,” said David Duley, Atlanta-based PlanGap’s founder and CEO.
Scottsdale, Ariz.-based Annexus plans to announce insurance carrier and investment bank partners and launch this next generation fixed indexed annuity in early fourth quarter 2021.
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