Page 47 - Money - November 2018

reduce benefits or increase the Social in the form of an annuity. These come in 4SVGLSR 0]RGL EX
Security payroll tax, or some combination of many flavors, but the most cost-effective ;EMR[VMKLX ,SYWI
MR 6]I 2 =
both, to shore up the program’s finances for are usually single-premium immediate and
the future, according to the Social Security deferred annuities.
JAMES MILLER Board of Trustees. pay upfront now for income later, are the
Deferred income annuities, in which you
The prospect of reduced government
cheapest way to ensure you won’t outlive
benefits doesn’t sit too well with the reality
of longer life expectancies and nonexistent
your money. According to a quote from New
PHOTOGRAPH BY PATRICK corporate pensions. “People have been left York Life, a 55-year-old male who spends
$100,000 on a 10-year deferred annuity will
to their own devices,” says Blackstone’s
begin receiving $831.31 monthly, or $9,975.72
Tony James.
annually, at age 65, and those payments will
Financial advisors and academics often
continue, indexed for inflation, for as long as
recommend that savers take matters into
their own hands and buy their own pension,
he lives.

NO VEMBER 2 018 MONE Y. C O M