Most experts agree, Social Security headed toward insolvency by 2035 if the government doesn’t take drastic steps to fund it. To make matters worse, the passage of the Social Security Fairness Act (SSFA) means 3.2 million more Americans will be collecting benefits soon, which will drain reserves even sooner. While the situation is dire, the opportunities are huge for advisors who step in to help.

Key takeaways:

  • People receiving more benefits AND people facing a potential reduction of Social Security benefit need and want advice.
  • Advisors should talk to clients about the tax implications associated with SSFA.
  • The current scenario provides advisors an opportunity to share alternative guaranteed income options to those facing benefit reductions.
  • Educating people about Social Security is a win-win for advisors and clients.
  • The Social Security Administration is poised for more cuts. Advisors can help clients work through Social Security challenges.

How can advisors help clients navigate Social Security?

Clients have more questions about Social Security than ever. Those who are now eligible to receive more Social Security benefits want to know how to claim theirs. On the flip side, those who have been paying into Social Security for years have questions, too. If Social Security is teetering on bankruptcy, what does that mean for them? What can advisors do to help?

1). Provide regular updates on legislative changes.

We’ll be dealing with the aftermath of the SSFA and Social Security’s insolvency problem for years to come. How everything is going to work out (and when) is far from clear. Advisors can provide value and show their expertise by keeping clients informed about the status of new laws like SSFA and other changes to Social Security coming down the pipe (like future benefit increases and reductions) and changes to the tax code. 

2). Host more robust Social Security seminars and webinars.

With concerns about Social Security’s solvency intensifying daily and the SSFA enacted into law, advisors definitely have something to contribute to the conversation. More important, it’s a topic that people are desperate to get more information about. 

Traditionally, many advisors use Social Security seminars to educate folks about claiming strategies for optimizing Social Security. When to elect, when to have a spouse elect and how the math works around that. With client fears about Social Security escalating, advisors are in a unique position to educate clients about how to mitigate that risk with other sources of permanent income, like annuities.

Plus, Social Security seminars and webinars are consistently top lead generators for our advisors, and they’re great for driving engagement, so including them in your strategic arsenal is definitely a win-win.

3). Alert clients to tax implications of modified Social Security benefits.

While getting a larger Social Security check may be nice, those receiving a bump in benefits will need to pay income taxes on that increased amount—and they may even move into a different tax bracket. Advisors can help clients understand the tax implications involved and discuss options for mitigating taxes by moving assets into tax-beneficial vehicles, like life insurance and annuity products.

4). Revisit retirement plans to help clients prepare for Social Security benefit cuts. 

Social Security isn’t the only option consumers have for guaranteed income. The Social Security experts we rely on for insight encourage advisors to walk clients through scenarios where benefits are reduced by 20%. If a client is relying on that 20%, advisors can explain how other guaranteed income solutions can fill that gap.  

We have to address the elephant in the room: the Social Security benefits clients are relying on may not be there 10 or even fewer years from now. Advisors who are proactive about discussing options with clients now, will end up being the heroes those clients need, should the axe fall.

5). Help clients deal with the SSA (apply for benefits, etc.).

It’s no secret that the Social Security Administration (SSA) has been grossly understaffed for ages and their backlog for resolving existing issues is notorious. Recently, the Wall Street Journal reported more cuts are coming to the SSA, stating the agency’s leadership was “under instruction to swiftly produce plans to cut its staff by half.”

Unless, some major technology upgrades are on the way (and we sure hope so), it’s going to be even more difficult to get answers from the SSA, especially for clients with more complex issues that can’t be resolved through automation. Advisors can provide clarity and act as a representative for clients when needed.

Financial advisors are in the perfect position to guide clients through questions about Social Security and help them weigh retirement planning options. Positioning yourself as a go-to resource on Social Security will bring peace of mind to clients and help drive business.

Social Security Fairness Act FAQs

Has the Social Security Fairness Act been signed into law?

Yes. Former President Joe Biden signed the Social Security Fairness Act (H.B. 82) into law on January 5, 2025, thereby repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Who does the Social Security Fairness Act impact?

The Social Security Fairness Act (SSFA) repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). WEP and GPO reduced or eliminated Social Security benefits for people who received a pension for work not covered by Social Security.

With WEP and GPO repealed, the millions of people who may benefit from the new legislation may include:

  • People who worked in the public sector and received pensions from state and local governments in some states, such as:
    • Teachers
    • Firefighters
    • Police officers
  • Federal employees covered by the Civil Service Retirement System.
  • State and local government employees who receive benefits from a pension for work not covered by Social Security.
  • People who worked in foreign countries and receive benefits from a foreign social security system.
  • People who may now be entitled to benefits based on their spouses’ or ex-spouses’ earning records.
  • Surviving spouses (and ex-spouses) or survivors who receive pension benefits from employment not covered by Social Security who were receiving a reduced spousal death benefit.

Simplicity InsurMark Virtual CMO Jack Martin and Social Security Expert Mary Beth Franklin took a deep dive into the SSFA on a recent episode of the Breakthrough Advisor podcast. Check it out here.

Does President Trump support the Social Security Fairness Act?

Yes, according to the Social Security Administration (SSA), which recently announced the agency’s commitment to expedite the new benefits at President Donald Trump’s behest. According to Lee Dudek, Acting Commissioner of Social Security on February 25, 2025: 

“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible.”

When does the Social Security Fairness Act go into effect?

According to the Social Security Administration, they planned to start issuing retroactive benefit payments in February of 2025 (which are retroactive to January 2024) and increase monthly benefit payments in April of 2025. The agency estimated (in late February) that most people would receive their one-time retroactive payments by the end of March 2025.

More complex cases that can’t be handled by automation will be handled on a case-by-case basis, which the agency says will take extra time to address. 

We help advisors help clients address Social Security fears

At Simplicity InsurMark, we know Social Security is weighing on people’s minds. That’s why our Virtual CMO Jack Martin recently sat down with Social Security experts Mary Beth Franklin and David Duley on two recent episodes of The Breakthrough Advisor Podcast to hash things out:

As an Advisor Development Organization, we also connect advisors with the tools and resources they need to connect with clients and prospects on this important topic. If you’d like to learn how Simplicity InsurMark is helping ambitious advisors build more sustainable and successful 21st century businesses, schedule a discovery call today.

As an ADO – Advisor Development Organization™, Simplicity InsurMark provides solutions to meet the ever-evolving needs of financial professionals with a mission to protect and enhance the financial security of every home in America.