Survey: 74% of Americans Say Social Security Would Have to be in Immediate Crisis Before Attempts are Made by Congress to Fix it
New PlanGap™ Annuity offers consumers way to hedge against Social Security risk
ATLANTA–(BUSINESS WIRE)–PlanGap, a product innovation company creating a new class of retirement insurance solutions, released the results of a survey of over 2,000 U.S. adults conducted online by The Harris Poll on behalf of PlanGap after the November 3 presidential election. The survey found that 74 percent 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 4 in 5 (79 percent each) agreeing that Social Security would need to be in crisis before a fix is attempted by Congress. More than half of Americans (51 percent) do not believe Congress wants to fix Social Security. This negative outlook is especially prevalent among those nearing retirement age. Three in five (60 percent) 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.”
Nearly three quarters of Americans (73 percent) believe Congress’s retirement benefits should be suspended until Social Security is fixed. For those ages 45 to 54, more than three quarters (78 percent) think that until Social Security is fixed Congress’s retirement benefits should be suspended.
PlanGap recently launched a Social Security-focused annuity, the first in 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 percent 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.”
Available in 18 states and the District of Columbia, with more states expected in the near future, PlanGap annuities are sold by licensed insurance professionals and financial advisors. Interested parties may visit plangap.com to be introduced to an approved agent.
Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a new class of financial solutions – retirement insurance – a suite of “trigger-based” annuity and life insurance products that solve fundamental financial issues for retirees. The company empowers people to insure themselves against disruptions to their retirement income, providing solutions for those worried institutions have made financial promises they cannot, or will not, keep. Visit plangap.com for more information.
View the press release on Business Wire.