It is a common yet sad scenario when people who have been employed for years go into retirement and end up having nothing to show for it. At other times, people that have been dealing working and get workplace accidents fail to get the social security benefits they deserve because they do not understand how to claim them. David Giertz, an experienced investor and advisor states that it is very important for investors to educate their clients about social security.
The first thing that people do not understand is that the benefits they get from the system depend on their past earnings on Ideamensch. This means that the more they skip taxes, the less beneficial it will be to them later on. Besides that, before the calculations are made, the system makes adjustments to the earnings to reflect changes such as inflation, which means that someone who was earning $20000 in the 90s will have this adjusted to around $40000 to cater for the inflation.
David Giertz states that one ironic thing about the system is that it really favors lower income earning individuals, yet they are the ones who are most afraid of learning about the benefits and going after them. Then, Giertz states that normally, the SSA uses 35 years of earning as a basis of calculating the final amount that one should be receiving as monthly benefits at http://www.bloomberg.com/research/stocks/private/person.asp?personId=232405062&privcapId=3611386. Another thing, probably the most important that these people do not understand is that it is possible to be eligible for more than three types of benefits, even if it is not at the same time. David Giertz concludes by saying that there is a lot of things that many people are ignorant about regarding their retirement benefits and that the only person that can help in creating an understanding of the system is the employers.