Leon LaBrecque, chief growth officer at Sequoia Financial Group in Akron, Ohio, said that most clients ask him whether Social Security “will be there” for them.
“Does the news change the discussion? No, because I tend to think that doing anything to Social Security benefits is a proverbial third rail for politicians,” he said. “Does it worry me? Yes, along with the probable 6% increase in benefits this year and the other tiny little $5 trillion deficits floating around. Inflation is a worry.”
Nadine Marie Burns, president and CEO of A New Path Financial in Ann Arbor, Mich., said the frailty of the funds “is worrisome to all clients as we attempt to create a retirement road map for them, especially women who are more dependent on Social Security for a majority of their retirement income.”
In the meantime, the Social Security trustees said that recent increases in inflation mean the cost-of-living adjustment for 2022 will approach 6%, a significant jump from the 1.3% COLA awarded this year.
Inflation is also expected to impact Medicare Part B premiums for outpatient coverage, which are projected to rise by $10 a month in 2022, to $158.50 under the report’s intermediate assumptions.