Can a life annuity help me claim social security benefits?

I am retired and have several hundred thousand francs of life savings. I will need to move to a care home because of my health, and am worried that the boarding fees will eat through my savings like there is no mañana.

If I invest my money in a life annuity which pays out relatively little every month, could I claim social security benefits to cover the boarding fees based on my low income to avoid having to use my own money to cover costs?

Hi there,

Buying a life annuity is not an effective way to avoid using up your wealth before claiming supplemental benefits. 40% of your annuities will be counted as taxable income, so you will end up paying tax again on part of the capital which you have already paid tax on. If you want to leave an inheritance to your heirs, consider making a gift instead.

Best regards from Moneyguru