If you are approaching retirement age, you should find out everything you need to know about social security. According to a recent study, a number of seniors have a complete understanding about social security and how it works. Making mistakes can cost you a great deal of money and even more taxes. Pensions were very popular when our parents and grandparents retired. Now that they are evaporating in record numbers, it is important to have a proper social security plan to maximize your benefits.
A 2015 study by the Nationwide Retirement Institute showed that upwards of 30 percent of retirees are receiving benefits less than what they thought. The study consisted of 900 participants and was broken into 3 groups. Of the group of future employees, 86 percent were clueless about social security, said David Giertz president of Nationwide Financial Distributors.
One of the most unfortunate misconceptions about social security is that people who believe that just because you can receive social security at age 62, you should. “It’s like a land grab mentality,” said Robert Seiler of ASC Financial Group. Although a person can retire at age 62, they could be missing out on a great deal of money, according to Giertz. Full retirement age begins between the ages of 63 to 65. The longer you wait, the more benefits you will receive.
For example, let’s say your retirement age is 66 and you are due $1,000 in monthly benefits. If you decide to take your benefits at age 62, you would only receive $750 or 25% less benefits. A full 25% of your benefits down the tubes can be quite a financial hit for some. One the other hand, an individual who works beyond their retirement age will receive 8% more per year.
David Giertz has over 30 years of experience in finance. Under his guidance, Nationwide Financial has grown from $11 billion to $17.8 billion in a few short years.