Make 2025 a Year of Change

When it comes to New Year’s Resolutions, Americans don’t always have the best track record. According to the Baylor College of Medicine, 88% of Americans will give up on their resolution within two weeks, and I can see several reasons for a high failure rate.

Many of us head into the new year with plans to really change our business and put it in a position to grow. But, like so many Americans, we will forget about the goal within the first two weeks. Clients will call, referrals will come sporadically, markets might continue to grow, fixed income might remain steady or grow. In short, the day-to-day gets in the way.

In addition, if your goals aren’t SMART (Specific, Measurable, Attainable, Relevant and Timely) it’s too easy to fall back into the same old patterns. We need a reason to commit to change.

Make This Your Year

We all say that this year will be different, but why?

There are many changes coming that will have long term effects on the financial stability of the average American. It’s our responsibility to protect their retirement income and their wealth to the next generation.

I’ll give you four key reasons to focus on changing your business.

1. Congress passed the repeal of the Windfall Elimination Provision and Government Pension Offset in late December 2024.

This increases the Primary Insurance Amount for millions of Americans, including teachers and government workers.

These Americans need new advice on how to plan for their Social Security and supplement their income needs with guaranteed and increasing income options for a longer life expectancy.

2. Many Executive Orders that are likely to be signed in early 2025 will tend to create unwanted economic effects like inflation.

Deportation will increase the wage base for many agricultural sectors and those costs will be passed along in the price of groceries. General tariffs tend to increase the cost of goods and services as well.

With longer life expectancies, it’s important to position income that can increase and offset the potential long-term effects of inflation for retirees.

3. Taxation on Social Security is on the table with serious consequences – both positive and negative.

Regardless of how this decision plays out, the need to plan and anticipate the changes in Social Security will increase.

If the tax plan is adopted to eliminate taxes on Social Security, overtime wages and tips, that tax reduction can create a $2.3 to $2.8 trillion shortfall in Social Security over the next eight years. This would move up the date where benefits would have to be reduced for everyone to as early as 2031.

4. Life expectancies continue to be underestimated for many retirees.

Too many planners continue to use birth rates in their software and plans versus life expectancies at age 65.

The average age at death of a male or female once they achieve the age of 65 is close to 95 years old. This will put pressure on the traditional assets under management and systematic withdrawal plans in place currently.

These are just a few of the reasons to make 2025 a year of change and remain committed to income planning. So, when clients call and you look at the year-end statements showing double digit growth, take the opportunity to review the income plan, not just the assets.

Call us for help in having the retirement income conversation with your clients. We have the resources and the tools to make the conversion easier, faster, and more impactful. You will see immediate impact with your clients by focusing on one of their greatest fears – running out of money.