How to Calm Clients' Fears of Social Security's Demise

It’s difficult for many clients to remain confident or maintain faith that they will receive their well-earned benefits. They understand the importance of this income source and dread the thought of losing it.

Getting to this dangerous point has been a slow burn over the past decade. The 2025 Trustees report, showing a 23% cut in benefits starting in 2033, and now moved up to 2032, was the tipping point for many. And the issues caused by the Department of Government Efficiency in 2025 did nothing to inspire confidence.

The following three themes may help clients stay on track.

1. Social Security is not going bankrupt.

It’s not sufficient to say those words to an anxious client. The proof is in understanding the program’s funding, the law and benefit calculations. Remind clients that we’ve seen this saga before. In the early 1980s, Social Security was “going bankrupt.”

Of course, it didn’t. Congress waited until the Reserve Account was depleted in 1982, and only then did they issue the 1983 Social Security Amendments. It is likely that Congress will wait until 2032 to address solvency.

2. Social Security is a 90-year success story that will continue.

Social Security underpins nearly all retirees’ income. As such, it is critical to make the best possible claiming decision within a comprehensive retirement income plan.

Simply claiming because one is scared is misplaced concern today and a regret in old age. Just ask any 80- and 90-year-old to understand the importance of making the right decision.

3. It’s time to get into the game.

Solutions are needed to guarantee that 100% of benefits are paid to eligible retirees. But only Congress can change the law to secure this vital program. And if history repeats itself, they will likely wait until the very last minute to act.

Since clients can no longer sit on the sidelines and do nothing about Social Security, they need to learn the facts and participate by contacting their representatives in Congress. It’s time to put some pressure on the only folks who can change the situation.

What Advisors Can Do

To help protect clients and preserve their financial and legacy goals, it’s best to get ahead of any unplanned benefit claims. A good place to start is recognizing that Social Security is in a little bit of trouble, but nowhere near a catastrophic demise.

During first-quarter meetings this year, try these ideas out with clients who are between 60 and 70 years old:

• Proactively talk about Social Security in your tax-planning meetings. Social Security is on the front page of the 1040 (on line 6a). Point it out and ask where clients are in their thinking about this critical source of retirement income.
  
• Strongly counter any clients who think they will be “grandfathered” into current rules if benefits are cut in 2032. There is no such provision in the law.
  
• Suggest undoing an early claim. Clients who claim before full retirement age can pay back benefits received if they’re within the first 11 payments. Or they can wait until FRA to suspend and claim later.

Younger clients will also benefit from a frank discussion about the future of Social Security. Encourage them to do more research, call their representatives if they’re so inclined and hopefully enjoy reading “Social Security — Lightly Toasted, Not Burnt: How to Make Your Best Claiming Decision.”

Marcia Mantell is the founder and president of Mantell Retirement Consulting Inc., a retirement business and education consulting company in the financial services industry.