The majority of respondents believe there will be cuts to Social Security under the current presidential administration, and most said the system is in need of changes to keep it financially viable. Among the changes mentioned were the privatization of part of the system; the application of cost-of-living increases for Social Security benefits only to lower- and middle-income households; the elimination of the payroll tax earnings cap, which limits the amount of income that can be taxed for Social Security; or the use of a means test for benefits so that people above a certain income threshold would see their benefits either reduced or eliminated.
Financial professionals can help consumers effectively and holistically prepare for the future by having more in-depth client conversations to better understand and maximize Social Security benefits.
Ambrozy says: “A majority of respondents across all ages said they would be likely to switch to a financial professional who had conversations about Social Security if their current advisor did not do that. Financial professionals need to know this is a way to help and retain clients.”