The need for Social Security advisory services is unprecedented. Nearly all financial advisors’ clients will qualify for Social Security benefits, most claimants (96%) do not maximize their benefits, and the rules are extraordinarily complex.

With over 200,000 financial advisors in the U.S., competition in the financial industry makes it difficult to stand out. By obtaining industry certification as a Social Security expert, financial professionals who specialize in the niche offering of Social Security advisory services are finding success by distinguishing themselves from their competitors, increasing profits and delivering valuable insights to clients.

The following are five reasons why an industry certification in Social Security is the next new trend for financial advisors.

1. Differentiate Yourself And Your Business
The guidance and feedback of an expert is highly prized and one of the most valuable products on the market. Particularly with Social Security, the market for expert education and advice about claiming benefits is extensive. Specialization helps advisors become highly effective at serving their clients and increases their branding potential, with referrals converting 30% better than other forms of marketing.

By becoming a trusted Social Security advisor, you will quickly differentiate yourself and your business as the expert to turn to when questions arise about this topic, increasing your competitive advantage in the marketplace. Adding this service to your practice requires little or no capital investment. Your education and proficiency on the topic along with quality Social Security maximization software are the most valuable investments you will make.

An exceedingly small percentage of Americans are “very knowledgeable” about Social Security. In a recent SimplyWise survey, only 1 in 300 could answer all five survey questions correctly. Your specialization in the topic will be filling a vast unmet need in the financial services market space.

As a trusted financial expert and advisor, you should expect and encourage your clients to ask you about Social Security. If you are not able to help them, they may look elsewhere. As a Social Security expert, you will become the go-to advisor for this age group and clients who are grateful for your expertise will refer others to you.

2. Strengthen Current Client Relationships
As an established financial professional with existing clients, adding the specialized service of Social Security expertise is an excellent way to strengthen those relationships.

In fact, your clients may already be asking you questions about Social Security. Many financial professionals refer their clients to the Social Security Administration (SSA) for advice, but SSA representatives are not permitted to provide personal advice, only facts and information. With over 2,700 rules governing the Social Security program, becoming a certified expert on the topic gives you the knowledge needed to provide them with correct answers and information.

Making an educated decision about claiming Social Security is even more important for women than men due to women having the longer life expectancy, lower lifetime earnings, more time out of the workforce and being the likely survivor of a couple. At the same time, the need for women to obtain financial advice is growing with women quickly surpassing men when it comes to making money, increasing their earning power and accumulating wealth.

Therefore, financial advisors working with couples have an extraordinary opportunity for strengthening current client relationships by providing Social Security advisory services and making sure their female clients are included in all retirement financial planning decisions.

3. Attract New Clients
Attracting new clients by offering specialized Social Security services will begin with your existing clients and professional affiliations. There is nothing more powerful than an extensive network of others in the community who are aware of your skills and expertise and will refer people looking for your services.

Your reputation as a trustworthy source who understands the details of Social Security and who wants to share that knowledge, will establish you as a trusted expert advisor. 

Becoming a thought leader in your community can be achieved by providing educational Social Security content that clearly conveys you understand the topic and have a good grasp of the issues involved. In addition to writing blog posts and articles, seminar and webinar presentations on Social Security are remarkably effective marketing tools.

People are more comfortable purchasing a service that they have been able to experience first, especially if the topic involves anything financial. Therefore, do not be afraid to share your Social Security knowledge. Many who come to know you may not need your services but will know of someone else who does.

Once you begin to advertise and spread the word to attract new clients, the referrals of individuals who work with you and experience your high-quality professionalism and expertise with Social Security will grow your business.

4. Expand And Scale Your Business
People want to work with professionals they trust and relate to, especially in the financial services industry. Developing trust with your clients is paramount to the success and growth of your practice.

Adding Social Security advisory services to your business can help it scale and grow, whether it is offered as a separate billable service or included within your overall financial management fee structure.

A hybrid option, depending on the size and type of the firm and broker dealer regulation, may be to have certain employees specifically work with clients to provide them with their personalized Social Security claiming strategy. The claiming strategy and benefit amounts can then be provided to the clients’ individual advisor for inclusion within their larger retirement financial planning and management.        

For many people, Social Security is their largest retirement asset. But even for those with greater financial resources, no retirement plan should be considered complete without a full examination of your client’s optimal Social Security claiming strategy.

Regular marketing of your firm’s Social Security services and expertise is critical to expanding your business. One of the most effective marketing tools is to provide free or low-cost seminar or webinar presentations. Whether this is a live, local event or an online webcast, these events can easily attract a room full of attendees, each with their own retirement financial concerns that you may be able to help them with.

The value of your expertise and trust generated by your solid Social Security planning skills will provide you with the opportunity to meet new clients who are in the market for an advisor with proven retirement income planning skills.

5. Incorporate Social Security Into Retirement Planning
The number of Americans 65 and older will increase from approximately 56 million today to over 78 million by 2035. With some 75 million baby boomers and 10,000 becoming eligible for Social Security every day, the demand for Social Security advice is, and will continue to be, unprecedented.

For these retirees, making an optimal Social Security claiming decision is the first step in their retirement financial planning process. Social Security advisory services provide advisors with a natural segue to retirement financial planning and the opportunity to help retirees make smart financial management choices as they age.

With the beginning of self-funded and employer provided retirement plans in the mid-1970s, many of today’s workers have become accustomed to managing their own investments. The shift from decades of focus on accumulation and growth to developing a strategy of tax-efficient withdrawal is a major change and can lead to a first-time need for a financial advisor.

Retirement planning based on sequential withdrawals from specific retirement and non-retirement accounts in the most tax efficient way, can provide clients with the highest consistent standard of living throughout their retirement years.

This type of planning can involve a high number of constantly changing variables and may require the services of a team of other professionals in the retirement space. These include taxes, Medicare, long-term-care, life insurance, estate planning and possibly real estate and reverse mortgage specialists.

There has always been a very natural partnership between financial and tax professionals, with many holding certifications in both fields. Those financial professionals with an understanding of how taxation of Social Security benefits works, have a valuable opportunity to help mitigate their clients’ tax liability in retirement.

If maximizing Social Security benefits requires waiting to claim for several years, the use of funds from retirement accounts to bridge the income gap can help to reduce the fully taxable required minimum distributions, RMDs, while also reducing income taxes and specifically taxation of Social Security benefits.

Conclusion
Individuals searching for answers to their Social Security questions often find it difficult to locate an expert who can help them. Their lack of knowledge, combined with the myths and half-truths they have been told, can lead individuals to select claiming strategies that are not optimal for them.

Social Security expertise is a valuable commodity in the retirement financial market space. Whether you want to differentiate yourself from your competitors, support your existing clients, or attract new ones—becoming a Social Security expert will help you achieve those goals.

Martha Shedden is the president and co-founder of the National Association of Registered Social Security Analysts (NARSSA) in which she leads the development of the education and training program for all Registered Social Security Analysts (RSSAs).