1) A study found that many Americans who rely on social security for retirement do not fully understand how the benefits are calculated. 2) Factors like the age at which someone begins collecting benefits impacts the monthly payment amount. Starting earlier leads to lower monthly payments compared to collecting at full retirement age or later. 3) The study recommends retiring individuals consult financial advisors who can help them understand how to maximize their social security benefits based on their individual situations.

1. Recommendations for Getting a Larger Social Security Check
Many Americans across the continent rely on Social Security to keep themselves and their
families afloat once they reach retirement age, or become disabled. Even though tens of millions
of Americans live paycheck-to-paycheck on Social Security disbursements - quite literally
keeping them alive and well - a staunch majority of Americans don't understand the intricacies of
the program.
A study conducted by Nationwide Financial Distributors, a subsidiary of the national insurance
provider Nationwide, indicated that loads of people already retired or considering retirement
don't fully understand the program that could very well be their sole source of income throughout
the latter portions of their lifetimes - Social Security.
David Giertz backed, supported, and contributed to the survey Nationwide Financial
Distributors, as the president of distribution and sales at the insurance provider. Me. Giertz feels
that "it's more important than ever to create a retirement income plan that [maximizes] Social
Security Benefits."
Nationwide Financial Distributors' study, carried out by its subsidiary the Nationwide Retirement
Institute, suggested that slightly less than one-third of retired individuals were receiving
retirement benefits less than originally expected. This is in contrast to only 22 percent of retired
individuals receiving reduced disbursements.
Nationwide Retirement Income looked over about 900 people over the age of 50. They all were
either retiring within 10 years, having already retired in the past ten years, or having retired more
than 10 years ago. 86 percent of respondents could not accurately identify factors that weigh into
calculating the amount of Social Security benefits. Because such payments are vital to many
retired individuals' lives, it's important for them to be fully informed of the actions and benefits
of the Social Security program prior to relying on it for their sole income throughout retirement.
Many financial advisors report being subject to clients that misinterpret the factor of age into
Social Security functions. Although people declared legally disabled are able to immediately
start pulling Social Security payments, people that turn 62 are able to start receiving
disbursements the year of turning 62 years of age. Unfortunately for these individuals, amounts
received are lowered because they receive them earlier, rather than later.
Just because someone can receive Social Security monthly disbursements when they turn 62
doesn't mean they actually should. Mr. Robert Seiler of ASC Financial Group calls the
phenomenon "the 'land-grab mentality' - it's there, you can take it, so you do." Unless seniors are
in poor financial positions with no means of earning income outside of Social Security, they
should postpone payments for as long as possible upon turning 62.
The United States government considers the full retirement age - the age at which people should
strive to retire - between 65 and 67. Individuals that pull payments prior to these age range
receive less than their full retirement age disbursement. Similarly, those that wait longer than the
age range receives increased payments, up to a set limit around $50,000 per year.

2. Let's consider a hypothetical example to help grasp the mathematics behind Social Security
payments and individuals' current ages. Susie Que's full retirement age is 66 years of age, at
which she's due a monthly payment of $1,000. If Susie opts to receive payments when she
initially turns 62, rather the waiting, she'd only receive $750 each month.
If Susie Que had waited until her full retirement age of 66, she would receive $1,000 in Social
Security benefits each month. Further, those who wait longer than their full retirement age to
begin pulling benefits receive an increase of 8 percent for each year they stay patient. For
example, if Susie Que waits until the year she turns 70 to begin drawing Social Security, she
would receive $1,320 each month, rather than the standard sum of $1,000. The benefit increases
on a dollar-for-dollar basis.
In the case Susie Que's regular disbursement at full retirement age was $2,000, she'd receive a
whopping $2,640 if she simply waited until the calendar year she turned 70.
If you've already started to accept Social Security within the past 12 months, there's good news -
you're still able to return payments and postpone the age you receive them. However, after the
initial 12-month window passes, you're stuck receiving Social Security at the discounted rate
until it runs out, or pass away.
Social Security is also taxed, something that upcoming, current, and long-past retirees should
know about. Those that earn over $15,720 and receive Social Security experience deductions
from amounts received over that limit, at the rate of $1 per $2 earned. Also, the payments are
taxed at a maximum of 85 percent of salary or wages received that year.
David Giertz recommends upcoming retirees to link up with one or more financial advisors to
experience a high quality of life during retirement. Nationwide's study indicated that trusting
financial advisors often resulted in better living throughout retirement.