For the past 30 years David Giertz has been helping people save for retirement and other financial goals. He has been both a financial advisor and executive in the financial services sector who has worked for companies like Nationwide Financial Distributors among others. He has written many articles about various issues in regards to saving for retirement and living in it. He has also been interviewed a number of times, such as by the Wall Street Journal.
One issue that David Giertz has extensively talked about is social security and retirement. He says that past generations had access to pensions but those are mostly now a thing of the past. He says it is because of this that people need to maximize their social security benefits so that they have the retirement they always wanted. However, he cites a study conducted by the Nationwide Research Institute which says that 30% of retirees are getting a social security monthly benefit which is less than what they had anticipated.
David Giertz says this report also showed that most people, 86% in fact, can’t identify what exact factors go into determining how much social security they will receive. He says that one misconception he has encountered many times over the course of his career is about age. He says that most people know they can qualify for this benefit at age 62 so they decide that is when they’ll start collecting. This is a really big mistake for most people.
By delaying when a person starts collecting on retirement they can get much more each month a few years down the road. David Giertz uses the example of getting $1000 a month at full retirement age, 66. If you start collecting at age 62 you only get $750 a month, a full 25% less. If you can wait to start withdrawing even later, say age 70, your monthly benefit will go up by 8% a year. Because many people start collecting at age 62 they are potentially leaving hundreds of thousands on the table simply because they didn’t know any better because they didn’t consult a financial advisor.