A 5.9% cost-of-living adjustment for 2022 and ongoing conversations about inflation have left many Americans worried about the solvency of the Social Security program. It's possible that this will contribute to Social Security depletion dates moving forward another year, however claiming early out of fear is not a good financial decision. Once reserves are depleted, income from taxes will allow the program to continue to pay 76 percent of scheduled benefits, that's before you even consider the high likelihood of new legislation that will shore up the system. Advisors have the opportunity to educate clients and help them make smart Social Security claiming decisions–even in this uncertain time.
Read this Perspectives Magazine article by Covisum Founder and President, Joe Elsasser, CFP® to learn more about the future of the Social Security program.
"Claiming early could cause your clients to miss out on tens of thousands of dollars of Social Security benefits. Financial advisors can add a lot of value by educating clients, helping them optimize their claiming strategy, and preparing them for potential cuts to Social Security. Additional preparation and education can calm your clients’ fears and help them make smarter claiming decisions."