Social Security: The Cheapest Annuity in Town

[uscitizen]

..Social Security: The Cheapest Annuity in Town

By Alicia Munnell | SmartMoney – Fri, Jun 1, 2012 10:02 AM EDT
....
Share39EmailPrint.....The Center for Retirement Research at Boston College has just released a new study that shows that the best way for people to turn their 401(k) balances into a stream of income is to “buy” an annuity from Social Security. Many people don’t recognize that Social Security is in the annuity business, but it is and it has the cheapest product in town.
For example, consider a retiree who could claim $12,000 a year at age 65 and $12,860 at age 66 – $860 more. If he delays claiming for a year and uses $12,860 from savings to pay the bills that year, $12,860 is the price of the extra $860 annuity income.[1] The annuity rate – the additional annuity income as a percent of the purchase price – would be 6.7 percent ($860/$12,860). Remember that Social Security benefits are indexed for inflation, so the retiree is buying a real annuity. Vanguard – a wonderful company – also sells real annuities but it pays much lower rates.

Social Security: The Cheapest Annuity in Town - Yahoo! Finance

 

[Mad Scientist]

Dude, are you serious? Don't you do any investigation into anything?

What is "The Center for Retirement Research at Boston College"?:
The Research Contributions of the Center for Retirement Research at Boston College

The Center for Retirement Research (CRR) at Boston College was established in October 1998 as part of the Social Security Administration's (SSA's) Retirement Research Consortium (RRC). To advance the RRC's larger goal "to inform the public and policymakers about policy alternatives and their consequences," the CRR's mission is to produce policy-relevant research on Social Security and retirement income issues, educate and train new researchers in the field of retirement income policy, and disseminate research findings to the research community, policymakers, and the general public.

It's a propaganda arm for Social Security!

 

[California Girl]

Dude, are you serious? Don't you do any investigation into anything?

What is "The Center for Retirement Research at Boston College"?:
The Research Contributions of the Center for Retirement Research at Boston College

The Center for Retirement Research (CRR) at Boston College was established in October 1998 as part of the Social Security Administration's (SSA's) Retirement Research Consortium (RRC). To advance the RRC's larger goal "to inform the public and policymakers about policy alternatives and their consequences," the CRR's mission is to produce policy-relevant research on Social Security and retirement income issues, educate and train new researchers in the field of retirement income policy, and disseminate research findings to the research community, policymakers, and the general public.

It's a propaganda arm for Social Security!

Oops.

 

[graham77]

It looks like the cheapest option available for annuity yet. Stats are promising, I hope it will uncover more interesting facts upon detailed discussion.

 

[jwoodie]

Dude, are you serious? Don't you do any investigation into anything?

What is "The Center for Retirement Research at Boston College"?:
The Research Contributions of the Center for Retirement Research at Boston College

The Center for Retirement Research (CRR) at Boston College was established in October 1998 as part of the Social Security Administration's (SSA's) Retirement Research Consortium (RRC). To advance the RRC's larger goal "to inform the public and policymakers about policy alternatives and their consequences," the CRR's mission is to produce policy-relevant research on Social Security and retirement income issues, educate and train new researchers in the field of retirement income policy, and disseminate research findings to the research community, policymakers, and the general public.

It's a propaganda arm for Social Security!

I can't tell whether your post is an ad hominem attack on the OP or merely a red herring. Perhaps you could clarify?

 

[Zander]

It makes sense to delay taking Social Security Benefits for as long as possible - provided you can afford to delay and are in good health.

 

[uscitizen]

I think I made some peoples head hurt with this thread.

 

[RightNorLeft]

The only people against Social Security are the ones that dont need it and never will. Everyone else realizes its purpose and how it keeps millions of older americans that never earned or were payed much all their lives out of the gutter.
You can do away with social security, but you cannot do away with the people that "NEED" it to survive, you will be paying for them either way.

 

[CrusaderFrank]

I think I made some peoples head hurt with this thread.

Obama admitted Social Security was broke

 

[whitehall]

First of all there is no Social Security "locked box". Since LBJ the federal government is authorized to spend every dime confiscated in FICA withholding. The people who gave us the Fannie Mae debacle and a 3,000 page health care law that nobody ever read want us to invest 401K savings in a gamble on a broken system. No thanks.