Hidden Value is a column in ThinkAdvisor where Joe Elsasser, CFP®, answers common questions with insights advisors and their clients may not have considered. This week, Joe discusses how common misconceptions about Social Security are leading many Americans to make poor claiming decisions. He suggests that advisors are positioned to educate clients about their social security benefit and help them make better decisions about when to claim, and that there is hidden value for the advisors who choose this path.
"The vast majority of Americans begin collecting Social Security earlier than their full retirement age — a decision that often means they’re losing out on tens of thousands of dollars. One of the biggest opportunities in the marketplace is for advice on Social Security. You can position yourself as a helpful resource and make a measurable difference for the financial well-being of your community by offering your Social Security expertise."
In the article, Joe clears up these common misconceptions about Social Security benefit cuts:
- Benefits will no longer be paid out once Social Security is out of money.
- Social Security will be means tested.
- There will be Social Security benefit cuts for current retirees. (Chained CPI and Increasing Full Retirement Age)
The Social Security program is complex and can be difficult to navigate. You can add additional value to a client's retirement plan by helping them determine the best Social Security claiming decision for their particular circumstance. Read the ThinkAdvisor article in its entirety.
Looking for a solution to help you quickly and easily optimize your clients' Social Security claiming strategy? Watch a demo of Social Security Timing®.