Have you been thinking about your Social Security? If not, it might be something you should start thinking about. Many people don’t fully understand Social Security, the down falls and benefits. It’s time to consider how it will affect your retirement. Experts warn that not paying attention to your social security could result in unexpected taxes or not enough income. Proper planning can help you to avoid some of these pitfalls.
David Giertz, president of distribution and sales at Nationwide Financial Distributors, encourages people to maximize their Social Security Benefits by creating a retirement income plan. Studies show that around 30 percent of people already retired find that their income is not enough, and worst of all it’s unexpected. Most people don’t understand what goes into determining how much income Social Security will provide for retirement. It’s important to remember that Social Security was designed to help with retirement but not fully provide your income. So it is important to plan accordingly.
Even though it is possible to start taking your social security at the age of 62, by waiting until the full retirement age of 65-67 could result in you getting a bigger income check. It’s possible to receive an eight percent increase just by waiting a few extra years to collect those checks. This is one pitfall to possibly avoid when you are considering when to take out your social security through proper planning.
Taxes can also effect your Social Security. It’s possible that if you start taking your Social Security benefits before retirement age, for example at age 62, that you could be taxed on that money as well. They don’t usually charge taxes on more than 85 percent of your income.
David Giertz, understands financial planning. He became the president of Nationwide Financial Distributors Inc. in March of 2013. David Giertz also is currently serving on the boards of several other Nationwide companies and is based out of Ohio.