When it comes to Social Security Retirement Benefits ignorance is not bliss. For individuals with a retirement plan in place in addition to SSR, the latter can account for 40% of their retirement income.
It is vital for financial advisors to discuss Social Security with their clients. Dave Giertz Nationwide Financial Distributors’ President reports that most financial advisors fail to do so. Discussing Social Security benefits both advisor and client. Eighty-percent of clients stated that they would seek a different financial advisor if the advisor failed to factor Social Security into the client’s retirement plan.
David Giertz explained how not talking about Social Security can hurt the client. A survey revealed that only 14% of future retirees understand how their Social Security Benefits are calculated. As a consequence, 30% of retirees get a smaller Social Security check than they anticipated. That percentage is on the increase.
The minimum age for collecting Social Security is 62. Doing so will also minimize your benefits. Conversely, working past your retirement age can increase your monthly payment by eight-percent.
If someone’s Social Security benefits would total $1,400.00 if they retire at 67 retiring at 62 will cost them $350.00 a month or $4,200 a year. If you start collecting Social Security and then decide you should have waited you can reverse the mistake. There are however two caveats. First, you have a year to change your mind, second, you have to pay back everything you collected. Most people don’t realize that up to 85% of Social Security Benefits can be taxed.
David L. Giertz was educated at the University of Miami and Millikin University. He holds a Master of Business Administration from the former and a Bachelor of Science from the latter. His career as a financial advisor began at Citigroup. He has been with Nationwide Financial for the last 19 years. During that time he has helped the company’s revenue grow by $6.5 billion.
Mr. Giertz is a former member of the Girl Scouts of Broward County’s Board of Directors. He has also served the Fort Lauderdale Chamber of Commerce as a director.