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4 Tips to Allay Your Clients’ Fears About Social Security Insolvency

What do you want to know

  • For some clients, fears about Social Security can interfere with any retirement planning efforts.
  • Educating clients early on the financial benefits of waiting to claim Social Security can be a key part of building reliable retirement security.
  • You could also talk about how the use of private annuities can supplement Social Security benefits.

Millions of Americans rely on Social Security to fund part of their retirement.

But today, many of those people are concerned about the long-term viability of the program.

How can we help ease these worries and keep savers not only on track, but also confident about their future?

Understanding how and why these concerns undermine retirement savers’ confidence can offer valuable insights to financial professionals.

What Your Customers Really Think About Social Security

In a recent main survey, we took a closer look at people who said they were worried about the long-term availability of Social Security.

We found that 40% of those affected are more likely to be uncomfortable with the retirement planning process.

Among this same group, an overwhelming 80% feel they are not saving enough (or just don’t know how to save) for retirement.

Beyond savings habits, a lack of trust in Social Security leads to additional financial worries.

Long-term sustainability can add to concerns people already have, as evidenced by our recent survey: three-quarters (76.6%) of employees say they experience stress with their day-to-day finances.

And 93.6% of employees say they are stressed about long-term financial security.

Knowing what contributes to overall social security concerns can help you build stronger connections with your customers, provide unique context and information aligned with their individual finances, and better guide them through their security needs. social and health insurance.

How to Make Social Security Work for Your Clients

Of course, this article is purely educational; it does not provide legal, accounting, investment or tax advice.

If you do not have relevant professional expertise yourself, you should consult a lawyer, financial professionals and other appropriate advisers on all matters relating to legal, tax, investment or accounting obligations and requirements. .

You should also encourage clients to seek the professional help needed to fill any gaps in the scope of the advice you offer.

But clearly, customers should know that Social Security is one of the few things that is truly indexed to inflation.

While helping your clients plan for retirement, be sure to discuss the following tips for maximizing their Social Security benefits.

1. Set up a social security account login.

Do your clients have social security accounts? Otherwise, this is the first place you should start.

Setting up a Social Security connection now helps individuals access their statements and see how much they may ultimately receive.

Another benefit: checking their accounts often before retirement also reduces the likelihood of identity fraud.

(Creating an account early helps keep records confidential and protects your customers’ social security numbers.)

2. Resist the urge to withdraw your benefits early.

Many people think of Social Security as a system they paid into and can claim retirement funds from as soon as possible.

This thinking needs to evolve.

Those who claim Social Security early lose the opportunity to increase their retirement income — missing out on a nearly 8% increase in their retirement income for each year they delay claiming — until age 70.

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