Nearly 10 percent of FPA members, or 2,697 individual planners, responded to a variety of questions on Social Security reform.  The overwhelming majority, 92.6 percent, agreed that Social Security's pending insolvency crisis must be fixed today. The federal government projects a reduction of benefits beginning in 2041, with the trust fund taking in less money than it pays out as early as 2017. A similar margin of FPA members, or 95.7 percent, believes their 6 million clients are somewhat or very concerned over the future of Social Security as it affects future income in retirement. 

"Financial planners are on the front lines every day with their clients in attempting to decipher how future Social Security benefits will affect their retirement income," said FPA President James A. Barnash. "While the financial planning process often involves preparing for unanticipated financial risks, decisive action by Congress this year or next would go a long way in addressing the concerns of anyone planning for the future."
  
The survey found financial planners had difficulty agreeing on a single solution to reform Social Security. Survey respondents were asked to "spend" 20 points on various solutions to the issues in attempting to identify consensus on one or more solutions, but their choices reflected widely varying preferences.  

Ranked highest was creation of some form of either fully private or partially private accounts, at 17,778 of 52,811 points spent by respondents, or 33 percent of all points allocated. Following next in preference were 21 percent favoring elimination of the payroll tax cap on wages above $90,000, and 18 percent supporting increasing the retirement age. A separate question asking directly if the retirement age should be raised garnered 58.4 percent in support, and 38.3 percent opposed.
 
In one of the few questions where planners approached near-consensus on a solution was tying the benefits calculation to the Consumer Price Index (CPI) instead of wage growth.  Nearly two-thirds of survey respondents supported this option, with 25.5 percent opposed.  This change alone, noted Barnash, would go a long way toward restoring the system to fiscal solvency by maintaining a clear balance between benefits and real spending power. 
 
Despite the widely varying opinions among financial planners, Barnash said the survey results will help the association identify critical parts of Social Security reform that FPA may be able to support or oppose if a major proposal draws significant traction in Congress.
 
As a result of the survey's finding that financial planners want a greater role in the debate, FPA will encourage chapters to organize town hall forums to discuss the issue in their local area.
 
"One of the most important aspects of this debate that everyone seems to gloss over," said Barnash, "is that Social Security is only one aspect of the financial planning process. We also need to keep this entire issue in perspective.  The problems with Social Security insolvency pale in comparison with the fiscal problems facing Medicare."