Security Benefit is a Kansas-based financial services company that provides investment and retirement solutions through independent financial representatives.
Security Benefit has approximately $30 billion in assets under management and distributes its products through a network of 27,000 financial advisors.
Security Benefit was acquired in 2010 by a group of private equity investors led by Guggenheim Partners.
|Security Benefit Product Reviews|
Product Review of Security Benefit Choice Annuity
Looking at a fixed annuity like the Choice product from Security Benefit may...
Product Review of Variflex Variable Annuity
Security Benefit provides an interesting subaccount option with the Variflex...
Product Review of Security Benefit Foundations 7
Indexed annuities with living benefit features add a new and interesting...
|Address||One Security Benefit Place|
Topeka, KS 66636-0001
Information & Articles about Security Benefit
The first Social Security cost of living adjustment (COLA) since 2009 will go into effect in January 2012.
Social Security beneficiaries will receive a 3.6 percent cost of living adjustment beginning in January. This 3.6 percent increase is equivalent to an average of $43 per month for each program participant.
This is welcome news to 55 million program beneficiaries—many of whom are largely reliant on Social Security.
After the increase, the average monthly Social Security benefit will be $1,229.
The increase will cost the government roughly $28 billion.
Roughly 10,000 Americans will retire each day for the next nineteen years. Many millions of these retirees will have financial profiles that are considered statistically average.
What, exactly, does it mean to be financially average, and what might retirement look like for the average person or household? How might the financial aspects of retirement play-out for you, your parents, or your family and friends?
Let’s take a look at some data sources to consider the average profile and how it may apply to your situation. For simplicity, I’ll give the average American retiree a name – I’ll call him William.
Who is William?
Let’s lend some definition to William by building a financial profile:
What are William’s Retirement Income Needs?
So, William needs to think about financing some portion of his pre-retirement income ($56,973) and future health spending over a very long time horizon – at least 20 years. At a minimum, William should think about a 17.9 year planning horizon, which leaves roughly 13 retirement years if he retires at 65. A more prudent planning horizon would be 20 - 25 years since there is almost a 1 in 3 chance that either he or his wife will survive to age 90.
The resources available for this long-term financing of William’s retirement include $244,000 in private wealth (a good portion of which is in the form of relatively illiquid home equity) and $22,884 in inflation-adjusted regular payments from Social Security.
The following is an approximate assessment of William’s retirement income needs:
Can William Make it?
The bottom-line is that William needs to figure-out how his $244,000 nest egg can finance $40,038 per year for 20 years.
Before discussing how this might occur, however, let’s first take a look at whether it is at all likely that William can retire based on his current needs and resources.
Stay tuned—the next article in this series will explore this issue in detail.
Are you interested in receiving a personalized report that shows the likelihood that your nest egg will last throughout your retirement?
There is a case to be made for home equity as the most important source of retirement funding in the United States, and this would seem to make the reverse mortgage a critically important consumer financial product since the reverse mortgage allows an individual to convert home equity into cash.
The reason is that home equity represents a significant portion of the net worth of most retirement age households in the United States. Consider, for example, some of the following statistics:
Further, consider the following:
The retirement funding gap of $17,996 per year is in the range of the average Social Security benefit. Based on current life expectancies, the amount required to finance $18,080 through retirement is in the range of $300,000.
Home equity is a natural and necessary source of cash for retirement financing because neither government nor personal savings will be capable of assuming the obligation.
With roughly 10,000 people retiring each day for the next 20 years in the United States, it’s amazing that there are not entire venture funds dedicated to reverse mortgage start-ups.
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