People are just not giving any thought to Social Security. Hence they are making a big mess with regard to their retirement planning on angel.co.
Studies have already shown that many of those people approaching retirement or even those who have already retired have so many misunderstandings regarding Social Security. This results in less income than expected or a lot of unexpected taxes for these retirees.
David Giertz is the President, Distribution, and Sales. He works at the Nationwide Financial Distributors. David Giertz recommends that people need to create their retirement income plan. This will include a lot of things. One thing to focus here on would be to devise ways for maximizing their Social Security benefits.
In fact, people were not even aware of the factors that determine the amount of Social Security benefits accruing to any person on retirement. David Giertz wants financial advisors to inform people about this in an accurate manner.
Age is a major factor here. People think that 62 is the age to take Social Security and so they go ahead and do that. But they also end up getting the least benefits this way. In fact, the longer they wait, the higher are the benefits that they would be getting on Moneytips.com. Another point to be noted here is that Social Security had been devised only as a way to assist retirees and not fund them completely. Hence there has to be a retirement plan too.
In order to get higher Social Security benefits, it is better to start later. This means opting for full retirement age that can range be between age 65 and 67. Waiting still longer will help in getting a much bigger monthly check.
Taxation is a field that is full of misconceptions. People are surprised to know that Social Security is taxable. The reason for taking Social Security at 62 must be only due to insufficient savings or due to some unexpected life event.