What are advisors telling clients as Social Security becomes less secure?

Article Summary

• Social Security faces real funding pressure: The trust fund is projected to be depleted by 2032, after which only ~72% of promised benefits may be payable if no reforms occur.
• Cuts are more likely for future retirees, not current ones: Advisors generally believe people already receiving benefits are unlikely to see reductions, but younger clients should plan for lower future payouts.
• Policy changes are expected—not program collapse: Fixes will likely include higher taxes, delayed retirement age, or reduced benefits, rather than eliminating Social Security entirely.
• Diversification is critical in retirement planning: Advisors recommend building multiple income streams (401(k), IRAs, annuities, etc.) and stress-testing scenarios with reduced Social Security to mitigate risk.