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PlanGap Releases the Results of the 2024 Annual Social Security Confidence Survey

May 22, 2024 03:39 PM Eastern Daylight Time

Atlanta, GA –PlanGap, a product innovation company, today released the findings of its 2024 Social Security Confidence Survey. The results reveal persistent concerns among Americans aged 50 and older regarding the future of their Social Security benefits.

Survey respondents were provided the latest estimates released on May 6, 2024, from the Social Security Board of Trustees: the Trust Fund responsible for retirement benefits is projected to be depleted in 2033, at which time the government would only be able to pay 79% of scheduled benefits.

Two-thirds of respondents doubt that the government can solve Social Security funding challenges without reducing benefits.

“The overwhelming lack of confidence in the government’s ability to solve Social Security’s funding challenges is alarming,” said David Duley, Founder and CEO of PlanGap. “With a majority of respondents doubting that their benefits will remain intact, it is crucial for individuals to seek solutions that can safeguard their retirement plans. PlanGap is committed to providing innovative products that address these concerns and help retirees protect their financial future.”

Other Highlights from the 2024 Survey:

  • Concerns About Full Benefits:
    • 68% of respondents expressed a great deal or a lot of concern that they may not receive their full Social Security benefits as promised. An additional 26% express a moderate or a little amount of concern, leaving only 6% of respondents reporting no concern whatsoever.
  • Role in Retirement:
    • 58% of respondents believe that Social Security will play a major role in their retirement plan’s success, and 26% say it will play a moderate role.
  • Emotional Impact of Potential Benefit Cuts:
    • 82% of respondents feel frustrated, angry, scared, or nervous that benefit cuts will negatively affect their retirement plan’s success.
  • Stress Comparisons:
    • When asked to compare the stress of a potential 21% reduction in Social Security benefits to other stressful events:
      • 15% compared it to getting into a car accident.
      • 14% compared it to being diagnosed with cancer.
      • 13% compared it to the death of a loved one.
      • 9% compared it to a global pandemic.
      • 9% compared it to getting divorced.
  • Primary Solutions Expected:
    • 66% believe the government will primarily reduce benefits.
    • 17% expect the government will primarily increase payroll taxes.
    • 17% predicted the government will primarily borrow additional funds.

PlanGap conducted an online survey, the 2024 Annual Social Security Confidence Survey, of 1,003 U.S. adults aged 50 and older following the publication of the Social Security Board of Trustees’ Annual Report on May 6, 2024.

About PlanGap: Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company that creates “trigger-based” annuity and life insurance products designed to address retirees’ financial concerns. Through its insurance carrier partners, PlanGap empowers individuals to protect their retirement income from potential disruptions, offering solutions to ensure financial stability in the face of uncertain governmental promises. For more information, visit plangap.com.

See the press release on Business Wire

PlanGap Releases the Results of the 2023 Social Security Confidence Survey

April 18, 2023 01:51 PM Eastern Daylight Time

ATLANTA–(BUSINESS WIRE)–Americans are growing angrier and more scared that the government may be unable to pay their Social Security benefits in full, according to the 2023 Social Security Confidence Survey from PlanGap.

“With insolvency just 10 years out, people are looking for answers and solutions now so that they can feel more confident in retirement. They do not want the success of their retirement plan to be subject to political football.”

Survey respondents were informed the Social Security Board of Trustees has projected that the Trust Fund responsible for retirement benefits would be depleted in 2033, one year earlier than previously expected, and at which time, the government would be able to pay only 77% of benefits.

“Americans have watched the protests in response to benefit reductions in France, so it is no wonder 7 out of 10 people, at or near retirement age, believe benefit reductions could happen here,” said David Duley, Founder and CEO of PlanGap. “Social Security is a significant source of income for 90% of retirees, and its uncertain future is naturally leading to fear, frustration, and doubt among the American public.”

This year’s survey results continue to highlight Americans’ lack of confidence in the projections provided by the Social Security Administration Board of Trustees. 53% of survey respondents answered they are not confident in the official insolvency estimates and believe the Social Security program is in worse shape than indicated in the report.

The survey also found that this lack of confidence goes hand in hand with increasing widespread concern:

  • 87% of respondents expect Social Security to have a moderate to major role in their retirement income plan.
  • 84% of respondents indicated they are frustrated/angry or scared/nervous that benefit cuts will negatively affect their retirement plan’s success.
  • 63% believe Congress will primarily look to cut benefits vs. raising taxes or increasing the national debt.

When thinking about the potential 23% reduction in Social Security retirement benefits and how stressful a reduction would seem to them, the top 3 responses included:

  • Being diagnosed with Cancer (16%)
  • Death of a loved one (13%)
  • Getting into a car accident (11%)

Additional responses included comparing the stress of a Social Security benefit reduction to:

  • Getting divorced (10%)
  • A global pandemic (9%)
  • Starting a new job (9%)
  • Being late for a meeting (7%)
  • Being pulled over for a speeding ticket (6%)
  • A terrorist attack (6%)

Only 9% of respondents indicated they are hopeful the government will solve the funding challenges facing Social Security without reducing benefits.

“With insolvency just 10 years out, people are looking for answers and solutions now so that they can feel more confident in retirement. They do not want the success of their retirement plan to be subject to political football,” Duley said.

PlanGap conducted an online survey, the 2023 Social Security Confidence Survey, of 1,018 U.S. adults age 50 and older following the publication of the Social Security Board of Trustees’ Annual Report on March 31, 2023.

About PlanGap:

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its insurance carrier partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

See the Press Release on Business Wire.

North American Secure HorizonSM fixed index annuity suite expanded with new Secure HorizonSM Choice

DES MOINES, Iowa, Jan. 24, 2023 /PRNewswire/ — North American Company for Life and Health Insurance® (North American), a member company of Sammons® Financial Group and one of the largest issuers of fixed index annuities (FIAs) in the U.S.,1 has once again joined forces with Annexus, a premier independent designer of FIAs. The new North American Secure HorizonSM Choice (Secure Horizon Choice) fixed index annuity offers shorter 5- and 7- year terms and is designed to help clients reach their financial goals by offering growth and protection for their retirement savings.

In addition to an automatic and industry-first Performance Strategy Ladder created to provide enhanced growth opportunities, Secure Horizon Choice also offers an optional 4-in-1 Retirement Benefits Rider.2 Available for an additional cost, the 4-in-1 Retirement Benefits Rider helps address the primary risks clients may face in retirement–death, health impairment, longevity, and the possible reduction in benefits that the Social Security Administration projects may occur starting in 2034.3

“Secure Horizon Choice is the next evolution in FIA design.” – Ron Shurts, Annexus Co-Founder and CEOTweet this

“We are proud to continue working with Annexus, building on the success of North American Secure HorizonSM and North American Secure HorizonSM Plus FIAs,” said Rob TeKolste, president, Sammons Independent Annuity Group. “Secure Horizon Choice is yet another innovative solution for financial professionals to expand their services and better meet clients’ needs. In addition to helping clients grow and protect their savings, the optional 4-in-1 Retirement Benefits Rider available with Secure Horizon Choice enables them to prepare for the four common risks that may derail retirement plans.”

“Annexus strives to provide our distribution partners with the most innovative solutions on the market,” said Ron Shurts, Annexus Co-founder. “Secure Horizon Choice is precisely that— the next evolution in FIA design, providing a competitive growth opportunity that complements the Annexus portfolio of top-tier products. One of the most unique things about this new FIA suite is the option to elect the Retirement Benefits Rider which includes a groundbreaking Social Security reduction-triggered benefit and a two-of-six activities of daily living benefit. We’re excited to extend our partnership with North American and PlanGap to bring this product to market nationally.”

Advisors, Registered Investment Advisors (RIAs), and insurance professionals seeking access to this product should contact their Annexus-affiliated Independent Distribution Company. If you are a consumer interested in learning about Secure Horizon Choice, ask your financial professional for more information.

About North American Company for Life and Health Insurance

North American Company for Life and Health Insurance® is a member of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the U.S. We offer a comprehensive portfolio of term, universal life, and indexed universal life insurance products. North American also offers a wide variety of traditional fixed and fixed index annuities and consistently ranks among the top fixed index annuity carriers in the U.S. For more information, please visit here.

1Source: 3rd Quarter 2022 Wink’s Sales & Market and LIMRA/Secure Retirement Institute reports.

2The Retirement Benefits Rider has an additional cost that is charged as a percentage of the Accumulation Value on each Contract anniversary.

3Source: The 2022 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.

About Annexus

Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed index annuities and indexed universal life insurance products. Annexus has forged relationships with many of the industry’s leading insurance carriers and the world’s largest investment banks. Find out more about Annexus and its products at www.annexus.com.

About PlanGap

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products–retirement insurance–that solve previously unaddressed financial concerns for retirees. PlanGap, through its insurance carrier and distribution partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

DISCLOSURES

North American Secure HorizonSM Choice is issued on base contract form NA1015A/ICC21-NA1015A or appropriate state variation including all applicable endorsements and riders by North American Company for Life and Health Insurance, West Des Moines, IA. This product, its features and riders may not be available in all states.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

Fixed index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for optional benefit riders or strategy fees or charges associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.

North American Company for Life and Health Insurance is not affiliated with the Social Security Administration (SSA). North American’s product(s) are not sponsored, endorsed, sold or promoted by the Social Security Administration, and they make no representation regarding the advisability of purchasing of the product.

PR-117-2-23

SOURCE Annexus

Focused on the Company’s Suite of Enhanced Social Security Protection Tools and Solutions

ATLANTA–(BUSINESS WIRE)–PlanGap, a product innovation company creating a new class of retirement insurance solutions, announced that Chad Sexton and Alexa Aman have joined the PlanGap digital leadership team and will assume key management roles within the division. Together, Chad and Alexa bring 40+ years of experience in fintech product development, rapid technology deployment, online lead generation, and digital marketing strategy.

“I couldn’t be more thrilled to have these two talented and experienced individuals join the PlanGap family. We recognized that now is the time for us to double down and invest in the technology and tools advisors need to help their clients prepare for the impact of Social Security benefit reductions and take back control of their retirement success.” said Richard Drye, Managing Director at PlanGap.

Chad joins PlanGap from Stellantis, the global automotive manufacturer formed in 2021 through the merger of Fiat Chrysler and PSA Group, where he served as Chief Experience Officer for the Peugeot brand in North America.  He specializes in innovative product development with a focus on the customer experience within the technology environment. 

“I am thrilled to be back in fintech working on tools and solutions that can dramatically improve the retirement planning process. The uncertainty facing Americans regarding Social Security has never been greater. PlanGap is the leader in Social Security risk management, and it is a privilege to join this innovative team to develop technology solutions for consumers and advisors that assess the likelihood and mitigate the impact of a reduction in Social Security benefits.” said Chad Sexton, SVP of Digital Product at PlanGap.

Working alongside Chad in the development of PlanGap’s technology solutions is Alexa Aman.  Prior to joining PlanGap, Alexa served as Director of Operations for The Focus Group, an award-winning full-service marketing solutions firm.  Alexa brings 18 years of experience as a marketing operations professional specializing in market research analysis, digital marketing management and company specific expansion strategies to the PlanGap team

“It is so exciting to be working with such a great group of strategic thinkers.  The future of Social Security is extremely unclear right now with potential benefit cuts looming. PlanGap is at the forefront of innovation and technology working to empower advisors and educate Americans to provide greater security in their retirement planning.  It is truly an honor to be part of the team leading this charge.” said Alexa Aman, Director of Digital Product Operations at PlanGap.

About PlanGap:

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its insurance carrier partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

See the Press Release on Business Wire.

7 out of 10 Americans Age 45+ Doubt They Will Receive Full Social Security Benefits as Promised

ATLANTA–(BUSINESS WIRE)–PlanGap, a product innovation company creating a new class of retirement insurance solutions, released the results of its 2022 Social Security Confidence Survey of 1,045 U.S. adults age 45 and older following the publication of the Social Security Board of Trustees’ Annual Report on June 2, 2022.

Survey respondents were informed that by 2034 the payroll taxes collected would only be enough to pay about 77% of scheduled benefits as forecasted by the official Social Security Annual report.

Compared to last year’s survey, this year’s findings showed a dramatic increase, regardless of political affiliation, in Americans’ lack of confidence that the government will be able to solve this funding challenge without resorting to cutting benefits.

  • Republicans’ lack of confidence in the government’s ability to solve the challenge of funding Social Security without reducing benefits increased 15% year over year. More notable—with Democrats controlling the House, Senate, and White House—Democrats’ lack of confidence jumped 64% percent vs. the 2021 Confidence Survey results.

Americans also reported a lack of confidence in the projections provided by Treasury Secretary, Janet Yellen, and the other Social Security Administration Board of Trustees members. 54% of survey respondents answered they are not confident in the official insolvency estimates and believe the Social Security program is in worse shape than indicated in the report.

The survey also found that this lack of confidence went hand in hand with widespread concern:

  • 86% of respondents expect Social Security to have a moderate to major role in their retirement income plan.
  • 82% of respondents indicated they are frustrated/angry or scared/nervous that benefit cuts will negatively affect their retirement plan’s success. Only 8% of respondents indicated they are hopeful the government will solve the funding challenges facing Social Security without reducing benefits.
  • 62% believe Congress will primarily look to cut benefits vs. raising taxes or increasing the national debt.

When thinking about the potential 23% reduction in Social Security retirement benefits and how stressful a reduction would seem to them, the top 3 responses included:

  • Getting into a car accident (15%)
  • Being diagnosed with Cancer (14%)
  • The death of a loved one (12%)

Additional responses included comparing the stress of a Social Security benefit reduction to:

  • Getting a divorce (10%)
  • A global pandemic (9%)
  • Starting a new job (7%)
  • Being pulled over for a speeding ticket (7%)
  • A terrorist attack (6%)
  • Being late for a meeting (5%)

In response to the survey results, PlanGap Founder and CEO, David Duley remarked, “Even more so than last year, Americans’ trust in the government’s ability to get big things right, like when Social Security may run out of money, is waning. And because Social Security plays such a foundational role in 90%+ of retirement plans in America, the message from the government that they may not be able to honor their promises to pay benefits in full only adds to the stress of planning in these very uncertain economic times.”

About PlanGap:

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its insurance carrier partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

See the Press Release on Business Wire.

This funding will advance technology and product development for PlanGap® Social Security protection and other retirement income risks.

ATLANTA—(BUSINESS WIRE)—PlanGap, a product innovation company creating a new class of retirement income protection solutions with leading insurance carriers, secured $9.4 million in Series A funding to support their mission of bringing more Social Security protection products to market. This investment was led by Cultivation Capital and participated in by thought leaders in the insurance, reinsurance, finance and insurtech industries.

The newly released 2021 Social Security Trustees Report forecasts a bleak future for the Social Security trust fund. The Trustees indicate that if Congress continues to fail to address Social Security’s financial challenges, that by 2033, the trust fund will be depleted and only able to pay out approximately 76% of scheduled retirement benefits at that time.

“It is disclosed on every single Social Security statement that by 2033 the program may need to reduce benefits by 24%,” said David Duley, founder and CEO of PlanGap. “The average household plans to receive nearly $1 million in lifetime benefits from Social Security, and for the vast majority of Americans, these benefits are the bedrock of their retirement income plan. They want and deserve a way to protect their promised benefits from being used as a political football.”

According to the most recent Social Security Confidence Survey (conducted after the 2021 trustees report was published), seven out of 10 Americans age 45-plus doubt they will receive their full Social Security benefits as promised. If the disclosed reductions take place, an average two-income household would see their payments decrease by $700 per month. Furthermore, a recent Transamerica retirement survey affirms that concern about future reductions in Social Security is the largest unaddressed fear in retirement planning in America.

“PlanGap’s intellectual property, technology and product designs have enabled the insurance industry to provide Americans with new opportunities for control and peace of mind in their retirement income planning,” said Cliff Holekamp, co-founder and managing director at Cultivation Capital, who joined PlanGap’s board of directors. “Soon every prudent financial planner in America will have to make sure their client’s Social Security income promises are PlanGap protected.”

Also joining PlanGap’s board of directors is John Hamlin, a veteran investor and former chairman of the board at REI, who has served on other high-profile boards such as Perficient (PRFT) and Safeco Insurance.

Richard Drye, managing director for PlanGap added, “Our goal has been to partner with the best in the industry. PlanGap’s recent announcements with Sammons-North American, Annexus, Ash Brokerage and Insurex, coupled with this Series A led by Cultivation Capital, reinforces our commitment to bring PlanGap solutions to the masses.”

About PlanGap:

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its collaboration with market leading insurance carriers and distribution partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

About Cultivation Capital:

Cultivation Capital is an early-stage venture capital firm. Since its founding in 2012, the firm has invested in over 150 companies and is recognized as one of the most active early-stage investors in the United States. Visit cultivationcapital.com for more information.

View the press release on Business Wire.

Partnership to Architect Reinsurance Solutions for PlanGap® Social Security Protection Products

ATLANTA–(BUSINESS WIRE)–PlanGap, a financial product innovation company pioneering Social Security Protection, and Insurex have announced a strategic partnership to architect reinsurance solutions for the Social Security Protection marketplace.

The recently released 2021 Social Security Trustees Report highlights the dire condition of the Social Security Trust Fund and the need for better solutions as funds continue to deteriorate. By 2033, the payroll taxes collected are projected to pay only about 76 percent of scheduled benefits. Social Security statements disclose that benefit amounts may be reduced because of this projected funding shortfall.

“For most Americans, Social Security represents the foundation of their retirement plan,” said David Duley, PlanGap’s Founder and CEO. “Our reinsurance strategy will allow our carrier partners to broaden the solutions they are able to offer to their clients.”

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 their full Social Security benefits as promised. The primary concern is that if Social Security benefits are reduced as disclosed by the Social Security Administration, a 24% reduction could derail a majority of retirement plans. PlanGap® Social Security Protection, provided by highly rated insurance carriers, puts Americans back in control of their retirement income.

“The team at PlanGap has created a transformational change in the insurance industry,” said Fred Jonske, Managing Partner for Insurex and former President and CEO of M Financial Group. “This is a new category of risk for reinsurance that is not correlated to mortality or asset risk. We are excited to work with PlanGap’s suite of intellectual property related to Social Security Protection.” While at M Financial, Jonske and his team built the world’s largest producer-owned reinsurance enterprise.

“PlanGap is committed to partnering with the greatest minds in insurance, reinsurance, and finance to make PlanGap® Social Security Protection solutions more accessible to the American public,” said Richard Drye, PlanGap’s Managing Director. “We are thrilled to announce our partnership with the incredibly talented group at Insurex.”

About PlanGap:

Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its collaboration with market leading insurance carriers and distribution partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.

About Insurex:

Insurex leverages the judgement and integrity of its strategic thought leaders and builds upon their historic success. The partners’ depth of knowledge extends from strategic direction, reinsurance, mergers and acquisitions, insurtech solutions, capital markets, product manufacturing and distribution alternatives. Visit insurex.net for more information.

See the Press Release on Business Wire