Social Security is critical for retirees, even for affluent investors age 55 and older, Spectrem Group found. For nearly one-third of those with a net worth between $100,000 and $1 million, Social Security will provide half or more of their retirement income, according to the research firm.
Sixty-three percent of affluent Americans think there shouldn’t be an income limit to receive benefits, and 79% of those with a net worth of $5 million or more are opposed to means-testing.
Only 31% of all investors have discussed Social Security with their adviser, and that decreases to 24% for investors with a net worth between $100,000 to $1 million. “With a sizeable portion of investors relying on Social Security income in retirement, and an array of options for when to begin receiving benefits, advisers must help clients navigate the program,” Spectrem Group says.
Spectrem’s findings are based on a survey of 634 people this past February.