Clients are increasingly asking financial planners whether Social Security and Medicare will survive until retirement, and many are taking steps that undermine their long-term financial security to cope with rising costs, according to a new survey from the CFP Board released this week.
The survey of certified financial planners found that 78% said the long-term viability of Social Security has been a significant topic in client conversations over the past 12 months. A slightly smaller majority, 73%, said the same about Medicare. Only three issues ranked higher: healthcare costs and retirement plans, each cited by 88% of planners, and tax policy, cited by 84%.
Retirement savings under pressure
Half of the planners surveyed said they had observed at least one client in the past year make a decision that eased immediate cost pressures but compromised long-term security. The most common action was taking an early withdrawal from retirement accounts, reported by 29% of respondents. Other actions included postponing estate planning updates (23%), cutting or stopping retirement contributions (20%), taking on high-interest debt (18%), selling investments at a loss (10%), and letting life, health, or disability insurance lapse (9%).
Industry data corroborates these findings. Vanguard's latest How America Saves report shows that 6% of retirement plan participants initiated a 401(k) hardship withdrawal in 2025, up from 5% in 2024 and a pre-pandemic average of 2%. The 2026 Social Security and Medicare trustees reports project that the Old-Age and Survivors Insurance trust fund will be depleted in the fourth quarter of 2032, while the Medicare Hospital Insurance trust fund is projected to run out in the second quarter of 2033.
Affordability angst amid upbeat outlook
The survey reveals a disconnect between clients' overall sentiment and their concerns about costs. Sixty-nine percent of planners said client concerns about affordability have grown over the past year, with 17% saying they increased a lot. Only 3% reported a decline. Yet 68% of respondents described their clients' overall financial outlook as positive, and fewer than one in ten called it negative.
Cost anxiety is more future-oriented than present-focused. Sixty percent of planners said clients worry about affording long-term goals and needs, compared with 53% for day-to-day expenses. Sixty-one percent said clients fear that at least one financial goal is now out of reach, with the most cited goals being buying a home (34%), achieving financial independence (27%), and affording healthcare (23%).
Advisors take action
Eighty-five percent of CFP holders said they are taking specific steps to help clients manage affordability pressures without sacrificing long-term goals. Just over half are stress-testing financial plans against a recessionary scenario (54%), and an equal share are encouraging clients to build or reinforce emergency funds to a specific target. About one-third are advising clients to revise retirement contribution rates rather than stop altogether (34%), accelerate debt repayment (33%), and pause or reduce spending on non-essentials (32%).
Many clients have already acted on these concerns. Roughly three-quarters of planners said clients have taken or considered financial steps because of cost pressures. The survey also gauged CFP holders' expectations for the upcoming midterm elections: 74% expect interest rates to remain largely unchanged after the election, and about three-fifths anticipate no impact on the stock market (59%) or the U.S. economy (57%).
For advisors, the findings underscore the importance of addressing Social Security's long-term funding in client conversations. As retirement income gaps widen, planners are increasingly using stress-testing and emergency-fund strategies to help clients navigate affordability challenges without derailing their retirement plans.
