America’s Retirement Gap: Addressing Savings Shortfalls, Social Security Uncertainty and How IULs Offer a Smarter Solution

jmealpha1
May 1
3 min read

For many Americans, the path to retirement is filled with uncertainty—and the data proves it.

Despite decades of workplace retirement plans and Social Security benefits, millions are either underfunded, misinformed, or overly reliant on systems that may not be equipped to deliver the retirement security they were designed to promise.

Retirement Savings Reality: We’re Behind

A 2024 CNBC study revealed that across every U.S. state, most Americans are far behind on retirement savings benchmarks. Some highlights:

The average retirement savings in many states is under $100,000—far below what’s needed for a 25–30 year retirement.
Even among workers in their peak earning years, 40% aren’t contributing to a 401(k) or similar plan (CNBC, 2023).

This is not just a gap—it’s a generational crisis.

Why Relying on Social Security Alone Is a Risk

According to the Social Security Administration, the system was never designed to fully fund retirement. It was created as a safety net, not a retirement strategy.

What’s worse?

By 2035, Social Security’s trust funds may be depleted, potentially resulting in a 17% reduction in benefits unless Congress intervenes.
For most retirees today, Social Security provides only 30–40% of their needed retirement income—and that percentage could drop further.

This means that even for those who’ve paid into the system their whole lives, Social Security will likely fall short. That’s a risk today’s professionals and business owners can’t afford to ignore.

The Opportunity: Why IULs Are a Smarter Retirement Tool

At a time when traditional strategies are failing to deliver, Indexed Universal Life (IUL) insurance provides an alternative—and a powerful one.

Here’s what makes IULs different:

1. Tax-Free Retirement Income

Properly structured IULs allow policyholders to access their cash value through policy loans—tax-free. This creates a retirement income stream that doesn’t count toward adjusted gross income or affect Social Security benefits.

2. Market-Linked Growth, Without the Risk

IULs credit interest based on the performance of an index like the S&P 500—but with a built-in 0% floor, so your cash value won’t lose money in a downturn.

3. No Contribution Limits

Unlike 401(k)s and IRAs, IULs don’t have annual contribution caps. High-income earners can build and protect wealth faster—without worrying about maxing out.

4. Liquidity and Flexibility

Unlike traditional retirement plans that penalize early withdrawals or limit access, IULs give you access to your funds at any time—for retirement, real estate, business, or emergencies.

5. A Built-in Death Benefit

Your IUL also comes with a life insurance component, ensuring your family or business receives a tax-free payout—preserving legacy and protecting future generations.

The Danger of Doing Nothing

If you’re not contributing to a retirement plan…

If you’re depending on a 401(k) alone…

If you’re assuming Social Security will take care of you…

You may be on track for disappointment, not dignity, in retirement.

But it doesn’t have to be that way.

Let’s Talk Strategy

You don’t need to max out your 401(k) to win.

You don’t need to rely on a broken system to survive.

You just need a better strategy—one that’s flexible, tax-efficient, and built to last.

Schedule your complimentary consultation today and find out how King Legacy Group can help you build a LivingLEGACY™ that works—now and for the long haul.