David Giertz Explains Why Healthy People Should Wait To Collect Social Security

Financial advisers can help people save more effectively for retirement. They can also provide professional advice such as when to start taking social security, the potential need for long-term care insurance, and other financial matters. David Giertz has been in the financial industry for three decades. He has helped many people over the years prepare for and then live in retirement. He offers a lot of advice through the media, like The Wall Street Journal, and other sources so that the general public is more knowledgeable about retirement.

When it comes to social security, David Giertz says that one of the most common things he comes across is clients who believe they should start collecting social security when they turn 62. They know that is the age at which the federal government allows people to start collecting this benefit and that’s about it. What they usually don’t know is that if they can wait until they are age 66, the full retirement age, they will get a 25% bigger check in the mail each month. If they can wait until age 70 they will get even more per month.

Several factors weigh into when to start collecting on social security, he says. Among these is the health of the person deciding when to start collecting. If they are in good shape they really should wait until an older age because they will potentially get $200,000 or more over what they would get if they start collecting at age 62. For those who are in poor health or have to collect social security at age 62 because of a lack of retirement savings they may have no choice but to start collecting as soon as possible.

David Giertz says that another thing that commonly surprises people is that they have to pay taxes on this benefit. He says there are income thresholds in place and that nobody pays federal taxes on more than 85% of their annual benefits. Still, people need to know they will be taxed. Also, if people start collecting at age 62 but keep working they could lose $1 of every $2 of social security benefits because of this.