The small unseen issues with social security

The president of Nationwide Financial Distributor, Inc and Nationwide F1 Distributor Agency, Inc, David Giertz is a visionary leader with exceptional financial service industry experience of 30 years. He is a holder of Bachelor of Science from Milliken University as well as Executive MBA from University of Miami. He has also been involved with several community organizations such as formerly chairing a board of Trustees with Milliken University.

Social security has undergone a series of misunderstandings from its benefactors. This has automatically led to less income for them or taxation by the government after retirement. According to David Giertz, our parents and those before them had a pension which has eventually ended due to a poor planning when it comes to retirement benefits. A study that was done on retirees shows that most people get less benefits than they expect to get, that is, 30% of the retirees.

It has also been noted that most people start getting benefits immediately after reaching the retirement threshold age which is 62 years. This however, has been noted to leave a lot of profits in the table. If a retiree decides to start getting benefits like let’s say a year after reaching full retirement age, which is between ages 65 to 67, it means his or her earnings will increase by 8% meaning they will get more money. This is unlike getting your benefits immediately after hitting the 62 year mark since at that age, one will be entitled to 25% than they are expected to get.

Different retirees have cited different reasons why they could not wait for their benefits to go beyond the threshold of retirement but the common reason being health emergencies or lack of savings. It should also be noted that social security is taxed. For every 2$ you earn above the annual limit if you are a social security beneficiary, the government will take 1$ from your social security. Make the right decision now, grow your benefits.

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