Strength and Support
Mar 7, 2025
Strength and Support
Mar 7, 2025
Social Security’s trust fund reserves are projected to be unable to pay full benefits to beneficiaries starting in 2035. At the same time, the last wave of America’s massive Baby Boom generation is nearing retirement age with more than 11,000 people turning 65 every day.
Fortunately, the life insurance industry plays a crucial role in helping families and retirees build financial security beyond Social Security alone. And this support also helps our nation’s finances.
New research from ACLI shows that life insurers and their financial protection products significantly reduce the federal government’s public safety net financial burdens.
Specifically, annuities provide millions of Americans with a guaranteed source of retirement income that allows many of them to postpone taking Social Security benefits. This deferral saves the federal government more than $100 billion.
In addition, private disability income insurance and long-term care insurance provide Americans with critical financial support when they need it most. These benefits also lessen the federal government’s disability insurance and Medicaid obligations by billions of dollars.
For more than 175 years, life insurers have been providing American families and businesses with financial certainty. People can count on us to be there in good times and in bad.
So can our nation’s safety net.
David Chavern
David Chavern is President and CEO of the American Council of Life Insurers (ACLI) whose mission is to provide financial certainty to Americans regardless of where and how they work, their life stage, or the economic status of their household. ACLI’s 275 member companies represent 93 percent of industry assets and provide financial security products and services to 90 million families.
