Many people who are approaching retirement in ten years or are already retired tend to have misconceptions about Social Security. This is because their financial advisors are not informing them accordingly, as stated on Instagram by David Giertz in an interview. The result can be less income or even unexpected taxes for these retirees.
David Giertz talks about pensions drying up and going away. David Giertz is the president of distribution and sales at the Nationwide Financial Distributors. He is talking about creating a retirement income plan that can maximize the Social Security benefits.
A study on soundcloud.com has been conducted by Nationwide Retirement Institute. It is showing that nearly 30 percent of people who have retired are receiving less benefit than they expected.
One of the biggest misconceptions here is that people think that they are 62 and they can start taking Social Security. Hence they take it. But Social Security was designed only to assist in retirement. It was not meant to entirely fund it. Hence there has to be a retirement plan too.
Even though eligibility for Social Security benefits starts at 62; the full retirement age as per the government is ranging from age 65 to 67. So waiting until that age, or delaying beyond that can result in a much bigger monthly check.
Taxation is another area that is full of misconceptions. People are surprised to realize that Social Security is taxed. David Giertz said that the government has income thresholds about what is taxed. On reaching full retirement age, any income that is earned will not be held against you as a taxation standpoint. This means that one can earn as much as they want.
The fact is that many people are not really in a position of having a choice but start getting their Social Security at age 62. This can be due to insufficient savings or due to an unexpected life event like a medical condition.
In fact, David Giertz points out that study by his firm has found 37 percent of retirees saying that health problems have prevented them from living their retirement as they had envisioned it. There are health-care expenses that keep many retirees from living the retirement life that they expected.
In fact, these health problems arrived earlier than they had expected. But retirees working with an advisor are more likely to live the retirement they expected. Hence maximizing your Social Security benefits is just one part of retirement planning.
Learn more about David Giertz: https://vimeo.com/davidgiertz