Giertz is the president of distribution and sales at the Nationwide Financial Distributors. He compiled a research that was backed up by the Nationwide financial retirement institute. Its conclusions were that individuals do not seek advisory about their social security. This is a very important aspect which most advisors neglect talking to their clients about. He also added that the survey also found out that 4 out of 5 people will change their advisors if they were not talking to them about social security. Giertz is of the opinion that most advisors might avoid talking to clients about social security because it is a complex topic. David Giertz believes that understanding the rules for social security and building confidence around them is very important for financial advisors. David recommends that financial advisors should take a keen interest in social security. As a financial advisor, David Giertz believes that to optimize the retirement income of a client’s social security is very vital.
Age is a significant factor to consider on the subject of social security benefits. The pensions that our grandparents and parents had is disappearing and it is essential to come up with a retirement income plan that optimizes social security. A high percentage of those retired are receiving pension less than they expected and the number grows yearly. According to a study conducted, most people who are 50 years of age especially those that are yet to go for retirement could not identify the factors that determined their social securities. Though one is eligible for benefits of social security at age 62, it’s good to wait or delay the benefits until the full retirement age. This age ranges from 65 to 67 years depending on the year of birth. It is essential to understand that the benefits are reduced when they are taken out before full retirement age. If you also delay taking your benefits after full retirement age, they grow by 8% of the total amount every year.
The social security benefits are also taxed. This mainly happens when one has not attained full retirement age. However, once one attains full retirement age, the income is not reduced by taxation. It is likely that most people may start using their social security earlier than the full retirement age. This might be due to unexpected life events such as sickness. In a study, it was found out that 37% of retirees do not live through retirement as expected due to health conditions. Those with financial advisors are less likely to experience these hardships during retirement.