Many advisors are not engaging with prospects and clients on Social Security, even though they see it as increasingly important, according to a recent study from Practical Perspectives and GDC Research.
One of the overlying themes of the findings was that very few advisors provide Social Security recommendations to clients, according to Howard Schneider, president of Practical Perspectives.
Advisors who are more actively engaged in Social Security planning and make it a core of their practice are far more likely to indicate that they’re reaping the benefits in their business, the research indicated.
Approximately 90% of advisors have some sort of Social Security advisory in place, but only 26% of the advisors sampled are willing to plan and recommend, according to the research. Thirty percent of advisors will lay out different scenarios and strategies, and 26% will engage and inform their clients, but they won’t offer any type of recommendation.
Advisors are very aware of the growing need for Social Security support. “Most advisors believe clients are very receptive to discussing Social Security,” Schneider said, “but there are challenges that emerge relating to the misconceptions that investors have related to Social Security, which advisors must deal with on a regular basis.”
One of the challenges is the unwillingness of advisors to pay for subscription-based supported preparation, Schneider said. Advisors are willing to either pay a small amount or use free software, like a calculator provided by the Social Security Administration.