People feel relaxed that social security will take care of them post their retirement. David Giertz is the President at Nationwide Financial Distributors. He is now telling American people that things have changed. There is not enough money any more. Hence they need to plan more and save more.
As far as social security is concerned, people need to be aware of a lot of things. Typically people think that just because they have reached the age of 62, they are eligible to take Social Security at https://twitter.com/davidgiertz. Hence they simply go ahead and do so. But what this leads to is getting the least benefits.
David Giertz says that people need to wait longer. In fact, the more they wait, the higher will be the benefits that will accrue to them. This is where the financial advisors need to play a vital role. They have to explain to them how much they would get as per their age. The calculation should be done accordingly.
David Giertz also explains that Social Security has been devised as a way to assist retirees. They should not look towards it as something that will fund them completely. This is why they must have a retirement plan in place.
Higher Social Security benefits will come when a person starts availing it later. This means that they must opt for full retirement age mentioned on angel.co. This will be between the age of 65 and 67. In fact, they must wait still longer. This will help them in getting a still bigger monthly check from Social Security.
Taxation is another field here that is full of misconceptions, as per David Giertz on MoneyTips.com. He says that people are simply not aware that Social Security is taxable. Hence they find this a rude shock. All these things must be clarified at the earliest.