According to research by Nationwide Retirement Institute, where about 900 people of age 50 years and above were interviewed, most people approaching retirement have a misconception about social security funds. This fact makes them have less income or unexpected taxes for retirement. To be précised, 30% of the retired people receive benefits less than they expected because they are unaware of factors that the number of social security funds. During the study, the retirees were categorized into three groups; future retirees, recent retirees and 10-plus retirees and interviewed. 86% of the future retirees were unable to identify the factors influencing the amount of the social security fund.
According to David Girtz, the retirement amount is influenced by only two factors. These include time of collection of social security funds and taxation. An individual becomes eligible for social security fund at the age of 62 which is much earlier than full retirement age according to the government scheme. If an individual takes the money at this age, it taxed and also fails to earn interest.
People are therefore encouraged to be patient until the benefits stop increasing. For example, if you become legible for the fund at the age of 66, you are advised to wait up to the age of 70 and get the full monthly benefit. Apart from the time of collection of funds, taxation also reduces the resources. Social security fund is considered as an income and is therefore liable to taxation if taken before retirement age. David Girtz, therefore, advised take their funds after retirement when it is free from tax, and it gains much interest.
The above advice is being given by David Girtz, an accomplished, innovative, inspirational and visionary leader with 30 years of experience in the Progressive Financial Services Industry. He has two degrees; Bachelor of Science and MBA from Milliken University and the University of Miami respectively. David Girtz has worked in the following financial institutions and made significant improvements; President of Nationwide Financial and Distribution, president nationwide Distributor urgency, Regional vice president of the Southeastern USA among others.