Social Security is a rapidly-changing situation for retirees and people expected to retire in the future. David Giertz is a financial advisor whom is interested in how social security will impact the clients of many potential future retirees. Evidence suggests that advisors are not talking to clients about social security, and 4/10 people would change advisors if their advisor doesn’t talk about social security.
Social security makes up a large chunk of a person’s retirement income – approximately 40% of a client’s retirement. A financial advisor needs to think about how social security comes into play with regard to their client’s retirement income. This is because a social security check is often one of the main sources of retirement income that a retiree has.
David Giertz has been with Nationwide Investment Services Corporation for approximately 31 years. He is based out of Columbus, Ohio. He recognizes that generations in the past have been able to retire on pension funds, but these pension funds are rapidly disappearing. This makes it very important for retirees to create a retirement income plan which is focused on maximizing social security benefits.
Approximately 30% of retirees are getting less money each month from social security than they expect. The majority of retirees in the future did not identify factors that are used to determine social security benefits. Many people think that they should start taking social security benefits at age 62, but the reality is that financial advisors advise that retirees wait until an older age. Full retirement age is often not until 65-67, and waiting longer means that a retiree will get a bigger check.
For many people, they can expect to see that their social security benefits will grow over time if they wait until a later retirement age. They can expect that their social security earnings will be taxed, which is something that may come as a surprise to older adults.