Financial product innovation company PlanGap has formed a strategic partnership with insurance advisory firm Insurex to develop reinsurance solutions for the Social Security Protection marketplace.
According to recent survey data, 7 out of 10 Americans age 45+ doubt they will receive their full Social Security benefits as promised.
The primary concern is that if Social Security benefits are reduced as disclosed by the Social Security Administration, a 24% reduction could derail a majority of retirement plans.
By 2033, the payroll taxes collected are projected to pay only about 76% of scheduled benefits, and Social Security statements disclose that benefit amounts may be reduced because of this projected funding shortfall.
“For most Americans, Social Security represents the foundation of their retirement plan,” said David Duley, PlanGap’s Founder and CEO. “Our reinsurance strategy will allow our carrier partners to broaden the solutions they are able to offer to their clients.”
“The team at PlanGap has created a transformational change in the insurance industry,” added Fred Jonske, Managing Partner for Insurex and former President and CEO of M Financial Group.
“This is a new category of risk for reinsurance that is not correlated to mortality or asset risk. We are excited to work with PlanGap’s suite of intellectual property related to Social Security Protection.” While at M Financial, Jonske and his team built the world’s largest producer-owned reinsurance enterprise.
Richard Drye, PlanGap’s Managing Director, also commented “PlanGap is committed to partnering with the greatest minds in insurance, reinsurance, and finance to make PlanGap Social Security Protection solutions more accessible to the American public. We are thrilled to announce our partnership with the incredibly talented group at Insurex.”
