In short: Without reform, the 29 percent benefit cut in 2030 could become permanent. Your retired and soon-to-retire clients who want to plan prudently should consider the potential impact, which can affect:

• Decisions regarding when to retire and start Social Security benefits,

• Whether it pays to delay the start of benefits and earn Delayed Retirement Credits,

• A prudent rate of spending and drawing down investment assets in retirement.

For your clients, the biggest Social Security red flag isn't the worsening shape of the program's finances. It's the fact that this is a year when political and economic choices are being aired, yet Social Security cans are being kicked all over the place, by politicians in both parties.

It's also clear that many young adults are struggling financially, under heavy student debts. Pushing higher Social Security payroll taxes on them isn't an economically viable or fair solution. The closer we get to trust fund exhaustion, the less flexibility policy-makers will have to devise solutions.

CBO projects future Social Security benefits using two methods: Scheduled Benefits are what retirees can count on under current law. Payable Benefits represent annual outlays that will equal annual program revenues after the trust fund is exhausted. Almost all financial advisors use Scheduled Benefits to help clients with retirement income planning.

Let's see what Washington can do about serious Social Security reforms in the next administration. If it does nothing, maybe it's time to start showing clients side-by-side analysis of what they can expect under both Scheduled and Payable Benefits, using the new Rule of 29.