How financial advisers are calming clients’ fears about the future of Social Security
How did your country report this? Share your view in the comments.
Introduction:
The news topic “How financial advisers are calming clients’ fears about the future of Social Security” has drawn international attention, with various media outlets providing diverse insights, historical context, political stances, and on-the-ground developments. Below is a curated overview of how different countries and media organizations have covered this topic recently.
Quick Summary:
- There’s been a striking rise in the number of Americans applying for initial Social Security benefits this year. Job losses, rising costs, and even staffing cuts at the Social Security Administration seem to be the triggers. Financial advisers are stepping in to help clients make the choice that”s best for them, financial adviser Danielle Howard told Yahoo Finance. Nearly 30% of new Social Security beneficiaries claim benefits at age 62. Around 32% claim benefits after age 62 but before their FRA, according to the SSA data. The SSA says it has no immediate comment on the rise in initial benefits claims this year, but it is investigating the issue.. The Social Security Trustees Association says it is “concerned’ that Donald Trump and Elon Musk are “taking that away” from the program, but the group doesn’t have a specific number.
- The S&P 500 is down around 10 percent in the past week, falling into bear market territory. The CBOE Volatility Index or VIX, often referred to as the “fear index,” has surged 130 percent over the same period. The anxiety reflected in the VIX can also be seen in the number of fearful client phone calls, texts and emails to their financial advisors. The percentage of clients asking about selling is still small but it has increased over the last few days, one advisor says.. The level of anxiety among her client base has increased significantly over the past few weeks. On a scale of 1 to 10, she approximates it jumping from a level 3 to a level 7. The way she measures their emotional state is based on the types of questions she receives. Things like: Do they have a cash need coming up? Are they worried about their job and potentially getting laid off? Or, is it simply the recent market volatility that is upsetting them?
- Nearly three-quarters, 73%, of non-retired adults and 71% retired adults say they worry they won’t receive their benefits if the trust fund runs out. The October survey included 2,492 individuals. Social Security relies on trust funds to supplement its monthly benefit payments that currently reach more than 72.5 million beneficiaries. At that time, an estimated 79% of those benefits will still be payable.”Once someone’s actually staring at the prospect of the end of their full-time employment, the seriousness of the need to fund that part of their life comes into full view,” said Mark Hamrick, senior economic analyst at Bankrate.
Country-by-Country Breakdown:
Original Coverage
There’s been a striking rise in the number of Americans applying for initial Social Security benefits this year. Job losses, rising costs, and even staffing cuts at the Social Security Administration seem to be the triggers. Financial advisers are stepping in to help clients make the choice that”s best for them, financial adviser Danielle Howard told Yahoo Finance. Nearly 30% of new Social Security beneficiaries claim benefits at age 62. Around 32% claim benefits after age 62 but before their FRA, according to the SSA data. The SSA says it has no immediate comment on the rise in initial benefits claims this year, but it is investigating the issue.. The Social Security Trustees Association says it is “concerned’ that Donald Trump and Elon Musk are “taking that away” from the program, but the group doesn’t have a specific number. Read full article
Financial advisors soothing frayed client nerves as fear index rises
The S&P 500 is down around 10 percent in the past week, falling into bear market territory. The CBOE Volatility Index or VIX, often referred to as the “fear index,” has surged 130 percent over the same period. The anxiety reflected in the VIX can also be seen in the number of fearful client phone calls, texts and emails to their financial advisors. The percentage of clients asking about selling is still small but it has increased over the last few days, one advisor says.. The level of anxiety among her client base has increased significantly over the past few weeks. On a scale of 1 to 10, she approximates it jumping from a level 3 to a level 7. The way she measures their emotional state is based on the types of questions she receives. Things like: Do they have a cash need coming up? Are they worried about their job and potentially getting laid off? Or, is it simply the recent market volatility that is upsetting them? Read full article
73% of workers worry Social Security won’t be able to pay retirement benefits. Here’s what advisors say
Nearly three-quarters, 73%, of non-retired adults and 71% retired adults say they worry they won’t receive their benefits if the trust fund runs out. The October survey included 2,492 individuals. Social Security relies on trust funds to supplement its monthly benefit payments that currently reach more than 72.5 million beneficiaries. At that time, an estimated 79% of those benefits will still be payable.”Once someone’s actually staring at the prospect of the end of their full-time employment, the seriousness of the need to fund that part of their life comes into full view,” said Mark Hamrick, senior economic analyst at Bankrate. Read full article
How to handle clients’ post-election despair … or delight
Donald Trump has won the 2024 presidential election. For financial advisors, that means this is a highly emotional moment for many clients. The danger is two-fold. If a client is convinced that the economy’s future is bleak, they may be tempted to sell off assets or make overly risk-averse choices. On the other hand, if a clients is thrilled that Trump won, they might have unrealistically high hopes and become too risk-on in their investments. How can wealth managers help investors navigate such strong emotions? What can they say to stave off rash decisions? Here’s how advisors from around the country are guiding their clients through this moment. Read full article
How To Talk to Clients About Market Volatility
Financial advisors need to be farsighted enough to ensure their clients know what to expect should volatility occur. “For the most part, talking to clients about market volatility during times of market volatility is too little, too late,” said David Flores Wilson, a certified financial planner at Sincerus Advisory in New York City. “It is critical to set expectations early and often,” said Lora Hoff of Investment Planners in Dallas, Texas. “Whether the client is coming off a great return period or a downturn, I talk about how this will be a part of the overall roller coaster ride to achieve a long-term reasonable positive return,” said Claire Basso of Hayden Advisory in Hayden, New York. “Good advisors prepare clients from the beginning for volatility before it happens,” said one advisor. “Get out ahead of the Bad News,” said another. Read full article
Global Perspectives Summary:
Global media portray this story through varied cultural, economic, and political filters. While some focus on geopolitical ramifications, others highlight local impacts and human stories. Some nations frame the story around diplomatic tensions and international relations, while others examine domestic implications, public sentiment, or humanitarian concerns. This diversity of coverage reflects how national perspectives, media freedom, and journalistic priorities influence what the public learns about global events.
How did your country report this? Share your view in the comments.
Sources:
- Original Article
- Financial advisors soothing frayed client nerves as fear index rises
- 73% of workers worry Social Security won’t be able to pay retirement benefits. Here’s what advisors say
- How to handle clients’ post-election despair … or delight
- How To Talk to Clients About Market Volatility
Source: https://finance.yahoo.com/news/how-financial-advisers-are-calming-clients-fears-about-the-future-of-social-security-140405188.html