People think that social security will take care of all their needs post retirement. Hence they do not have to think about retirement planning in any way. But this is far from the truth. Such kind of misconceptions amongst those approaching retirement or who have recently retired is leading to their getting less income than expected besides the payment of unexpected taxes.
This is why David Giertz, who is the president of Nationwide Financial Distributors, feels that we need to know that the pensions which the older generations were receiving are now drying up. Thus it is important for all to have their own retirement income plan. This should include maximizing the Social Security benefits too.
According to twitter.com, a study that was conducted by the Nationwide Retirement Institute has clearly shown that 30 percent of the retired people are getting much lesser social security benefits than what they were expecting. The number of people with this kind of complaint is increasing each year. This study had been conducted on 900 people aged 50 or more than that.
David Giertz makes another point here. The study showed that 86% of people who were about to retire did not know about the factors that determine how much of benefits they will get from Social Security.
There is a misconception that is regarding age. This is something that most financial advisors have to deal with on a regular basis on About.me. Many consider that since age 62 is the time when they become eligible to avail Social Security, hence they should do so right away on reaching that age. But they do not know that the retirement age according to the government will be between 65 and 67. In case they wait until this age, or even further, it will help them to get a higher monthly check.
Find more about David Giertz: https://www.linkedin.com/in/david-giertz-5aa76051