Advising on Social Security certainly isn’t the sexiest financial area for advisors, but the fact is that the vast majority of Americans rely on Social Security for income in retirement. New data suggests that Social Security makes up more than half of income in retirement for an overwhelming 65% of American retirees. The following are the reasons why every advisor needs to seriously consider integrating Social Security advising into their practice.
The Social Security Agents Aren’t There to Offer Advice
One of the biggest misconceptions that many Americans are startled to discover is that the clerks at the Social Security Administration aren’t there to actually offer advice on how to claim. In stark reality, SSA employees are not allowed to give specific guidance; instead they are there to pretty much “take your order”. This essentially means that Americans are left on their own when it comes to determining when and how to file for Social Security.
Why It Matters
Without clear guidance on how and when to claim, many Americans are left in the dark as it pertains to how much money they could potentially lose in benefits. What’s more, when the time comes for them to take it, they may not have even considered how taxes and Medicare will cut into their earnings in retirement. This leaves a huge vulnerability for retirees, who may not be aware of penalties and other claiming strategies available to them.
Advising On Social Security Opens Doors
The reality is that Social Security opens up a huge opportunity for advisors to provide strategic value in this knowledge gap; while also enabling a gateway for larger asset allocation opportunities. By providing this piece of the puzzle, advisors in many cases get access to other key components that are crucial to a client’s successful retirement planning strategy. Social Security essentially enables the advisor to gain access to those other pieces of the puzzle and put them together for the client in a way that fits their lifestyle and retirement planning needs.
Creates a Unique Opportunity to Acquire New Clients
Unlike many other financial topics, Social Security is one of the few topics where prospects will openly attend seminars to learn without having to add any additional incentives. That’s largely because, unlike many other topics, people actually WANT to be educated around Social Security, creating a huge opportunity for advisors to take advantage of. In fact, Social Security seminars are one of the few seminars which can be successfully hosted at local libraries; having the added benefit of anchoring advisors in the local community.
Still A Great Marketing Opportunity in Spite of New Law Changes
In spite of the recent law changes affecting the File and Suspend and Restricted Application strategies, Social Security Maximization marketing remains a very powerful method of prospecting for financial professionals for many reasons. As stated earlier in this article, an estimated 65% of Americans rely on the amount of Social Security benefits they will receive once they retire—and the new rules and deadlines make claiming Social Security more complicated than ever. Regardless of these claiming strategy changes, clients and couples still face hundreds of potential claiming scenarios in determining the best election strategy to maximize the amount of benefits they will be eligible to receive. An additional factor to consider is that nearly 50% of those eligible for benefits file earlier than full retirement age; leaving a great deal of money on the table. Also, most are unaware that there are still strategies available to them to maximize these benefits. For these and many other reasons, the need for your advice is more critical than ever to assist them in making the best decisions in putting a plan in place for the income they will need to live on in retirement.
In summary, although Social Security isn’t the most exciting of topics for many, it is both very relevant and very important for the vast majority of Americans. For the advisors who decide to add this value into their practice the rewards can be both very fruitful and long lasting. If you are interested in learning more about Resource Solutions Social Security Maximization Program as well as some of the other complete turn-key programs we offer financial advisors, click here to contact us.