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New Poll Reveals Major Social Security Gap Advisors Can’t Ignore
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're discussing social security, and a major gap that advisors can’t ignore. Despite being one of the most popular government programs in the country — it’s also one of the most misunderstood. New polling data reveals several surprises, and the results may change how you view retirement planning.
Plus, a look at all the top stories and market activity from this past week.
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Table of Contents
INDUSTRY CHATTER
Social Security may be the most popular government program in America — with more than 74 million people receiving monthly payments — and yet, it’s one of the most misunderstood.
A new national poll finds that 83% of Americans view Social Security favorably, and more than 80% expect it to provide at least part of their retirement income. Yet at the same time, 70% expect benefits to be cut, and nearly a third believe the program won’t exist when they retire.
For advisors, that tension, paired with deep skepticism is worth paying attention to.
One reason for the disconnect is simple: most people don’t really understand how Social Security works. Nearly half don’t realize today’s payroll taxes fund today’s retirees. Most don’t know how much they pay in payroll taxes, when benefits actually begin, or how large benefits can be. Many believe Social Security functions like a personal retirement account they paid into, rather than a pay-as-you-go system with built-in redistribution.
That misunderstanding shapes expectations and frustration. A majority believe younger workers are getting a worse deal than today’s retirees, and nearly two-thirds say Congress has “broken its promises.” Younger Americans, in particular, are far more open to benefit cuts for current retirees if it protects them from higher taxes, while older Americans overwhelmingly want current benefits preserved at any cost.
For advisors, this creates both a challenge and an opportunity.
Many clients treat Social Security as a guarantee, even while expressing doubts about its future. That combination can lead to complacency (“it’ll be there somehow”) or disengagement (“it won’t matter anyway”), neither of which is good planning behavior.
At the same time, Social Security is a powerful tool that can be used for education and engagement. Clarifying how benefits work and are calculated can reduce anxiety and replace fears with confidence and encouragement.
Another notable data point is that 51% of those polled said they aren’t currently saving for retirement, yet most still expect Social Security to be there and play a significant role when they are of retirement age. That gap reinforces how important it is to position personal savings not as a replacement for Social Security, but as the stabilizer that gives clients flexibility no matter what changes (cuts, etc.) may come.
WEEKLY MARKET RECAP
Wall Street kicked off the first full trading week of 2026 on solid footing, with both the S&P 500 and the Dow Jones Industrial Average pushing further into record territory as investors balanced resilient economic data against steady expectations that interest-rate cuts could arrive later this year.
Market leadership continued to rotate away from mega-cap technology toward more cyclical industries. U.S. equities tied to oil and defense rallied after a U.S. military operation in Venezuela led to the capture of President Nicolás Maduro.
Venezuela Developments Reshape Energy Outlook
President Donald Trump announced that interim authorities in Caracas had agreed to supply between 30 million and 50 million barrels of sanctioned crude to the United States.
Market participants are also watching whether the U.S. administration may impose export controls to restrict Venezuelan oil flows to geopolitical rivals, a move that could reshape global energy trade.
Jobs Report Sends Mixed But Reassuring Signals
The week's most closely watched economic release was December's jobs report. Nonfarm payrolls rose by 50,000, slightly undershooting expectations for a 60,000 gain. Yet, the unemployment rate unexpectedly fell from 4.5% to 4.4%, easing fears of an acceleration in jobless conditions.
The mixed report strengthened the view that the Federal Reserve will hold rates steady at its January meeting, while leaving the door open to cuts later in 2026 if labor market softness persists.
Consumer sentiment showed tentative improvement at the start of the year. The University of Michigan's preliminary January index climbed to 54.0, the highest level since September, suggesting households are growing slightly less pessimistic even as inflation remains a concern.
Trade data delivered another surprise. The U.S. goods and services trade deficit narrowed sharply in October to $29.35 billion, the smallest gap since mid-2009, as tariffs continued to curb imports.
The improvement prompted the Atlanta Fed to lift its estimate for fourth-quarter GDP growth to 5.4% annualized, a pace rarely seen in the last decade, excluding the post-pandemic recovery.
Defense Stocks Lead Weekly Gains
Defense stocks were among the week's standout performers after Trump outlined plans to increase the military budget to $1.5 trillion in 2027.
Smaller contractors such as Kratos Defense & Security Solutions (KTOS), AeroVironment (AVAV) and Karman Holdings (KRMN) rocketed, while major players such as Lockheed Martin (LMT) were among the best weekly performers in the S&P 500.
The SPDR S&P Aerospace & Defense ETF (XAR) rallied 10.5% for the week, notching its best weekly gain since April 2025.
Among mega-cap stocks, Alphabet (GOOGL) overtook Apple (AAPL) as the world's second-largest company by market value, as investors continued to bet on Google's leadership in artificial intelligence.
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THE WEEK AHEAD
Economic Data
Monday: Fed speeches (Barkin, Bostic, Williams)
Tuesday: CPI, new home sales, Fed speeches (Musalem, Barkin)
Wednesday: PPI, retail sales, home sales, Beige Book, oil inventories
Thursday: Initial jobless claims, manufacturing survey, import prices
Friday: Industrial production, housing index, oil rig count
Earnings
Click here for the full calendar of economic data and earnings reports.
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