PlanGap Launches Annuity that Offers Protection Against Projected Shortfall in Social Security Benefit Payments

First-of-its-kind product is a solution for possible cuts in critical retirement funding

For Americans worried Social Security benefits will be reduced, there is now a solution: The PlanGap™ Annuity is the first financial product that empowers people to protect themselves against a future reduction in Social Security benefits while still earning a guaranteed interest rate.

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PlanGap has launched the PlanGap Annuity, the first financial product that empowers people to protect themselves against a future reduction in Social Security benefits.

The PlanGap Annuity introduces an entirely new class of financial solutions called retirement insurance, which is a suite of “trigger-based” annuity and life insurance products that solve fundamental financial issues for retirees.

As originally designed, Social Security was intended as a supplement to retirement income and not a primary source of funds. Consider the example of Jane Doe, a 55-year-old woman who wants to retire in 2034. If Jane is like 85 percent of people in her age group, she has less than $500,000 saved for retirement. At this level of savings, she needs Social Security to retire comfortably.

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According to the Social Security Administration (SSA), its retirement program cash reserves will be exhausted in 2034, triggering a 24 percent reduction in benefits. If this 24 percent reduction takes place, an average two-income household like Jane’s would see a $700 reduction in monthly income. (These calculations do not include Covid-19 impacts, which could further erode the program’s ability to pay.)

Now, with the PlanGap Annuity, Jane can position herself for a win/win scenario, no matter what happens. If her Social Security benefits are reduced, she will receive a PlanGap Bonus to help fill the income gap. If benefits aren’t reduced and she no longer feels the need for the insurance, she can withdraw the initial premium, the interest she earned and a Flexibility Bonus at the end of any five year anniversary of the policy.

Triggered by a government reduction in monthly Social Security benefit payments, PlanGap pays policyholders a sum based on the amount of coverage chosen at the time the annuity was purchased. This “PlanGap Bonus” escalates over time and caps at 30 percent of initial annuity value.

“Americans want control. They don’t want to feel like a political football when their retirement security is on the line,” said David Duley, PlanGap’s founder and CEO. “These are people who worked for decades and expect the full benefits for which they and their employers paid.”

By 2035, the number of Americans 65 and older will increase from 56 million today to more than 78 million, significantly increasing the number of people relying on Social Security benefits.

“The advent of Social Security gap insurance was long overdue. We are proud to have created the nation’s first and only plan that gives policyholders peace of mind, helping them protect one of their largest sources of retirement income,” Duley added.

Available in 18 states and the District of Columbia, with more states expected in the near future, PlanGap annuities are sold by licensed insurance professionals. Interested parties may visit to be introduced to an approved agent.

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