Retirement is something every working citizen looks forward to when they reach retirement age 62 or full retirement age 65. In a 2016 Nationwide Retirement Institute Study, people who have reached retirement age and those who were near retirement had misconceptions about their social security benefits. David Giertz, president of sales and distribution at Nationwide Financials told CNBC that pensions are drying up and going out of existence. He says it’s imperative to create a retirement plan for income that includes social security as part of full retirement benefits. He also said that financial advisors should communicate with their clients about social security after a survey revealed consumers’ advisors avoided the topic.
Another misconception Mr.Giertz said retirees and future retirees have about social security is the eligibility age. Although, the age for people to start drawing their social security is 62, the full retirement age is 65 to 67. He said that retirees who wait until full retirement receive higher monthly income, compared to early withdrawal retirees. The retire checks are even higher if they wait beyond full retirement age, he explained. Giertz added that the full retirement annual retirement amount will grow by eight percent if they start social security benefits beyond full retirement age.
David Giertz joined Nationwide Life Insurance Company’s Nationwide Financial Distribution and Sales as Senior Vice President, in April 2013. He became President of Nationwide Financial Distributors Incorporation one month earlier. Mr. Giertz brings over 28 years of experience in the banking, investment, and insurance industries. He’s a financial planning professional with expertise in social security benefits and building retirement investment portfolios. David ended the discussion stating that taxation is another misconception involving social security benefits, as well as, unexpected health problems having an influence.