Health-care spending falls under the “needs” category, and the cost is often underestimated. To give them an idea of how Medicare and Social Security affect one another, talk about how the “hold harmless” rule affects them, he said. This rule protects Social Security from Medicare premium increases, ensuring Social Security benefits will not decline due to Medicare Part B premium rises.
Having these discussions is important with all clients, no matter how much money they make, and it will give advisors an added edge when trying to keep clients.
“People want to know this, even if they want to use [their Social Security money] for charitable stuff. Everyone paid into it. This is how to keep people away from your clients—by doing that analysis,” DiVencenzo said.