Financial advisors are less worried about cuts in Social Security benefits for their older clients than they believe their clients are, according to a survey from The American College of Financial Services.
The College, which provides educational courses for financial professionals, surveyed 245 advisors with the Retirement Income Certified Professional designation, which it created, and found that 67% of advisors with older clients believed those clients were “moderately worried” about drastic benefit cuts in the Social Security program.
In contrast, only 46% of the advisors surveyed felt the same, leaving more than half (54%) not worried about drastic cuts. If they’re wrong, however, their clients will suffer.
Eighty-four percent of advisors surveyed, however, said a 20% cut in Social Security benefits today would drastically alter their clients’ lifestyles.
That is not an impossibility. The latest annual report of the Social Security Board of Trustees, released in April, estimates that the Social Security Old-Age and Survivors Insurance Trust Fund will be depleted by 2034, which will cut benefits by 23% at that time if nothing is done to shore up the fund.