Social security can account for as much as 40 percent of the retirement planning process, yet many financial advisors do not speak to their clients about it. According to David Giertz, Nationwide Financial’s President of Sales and Distribution Organization, it is necessary for financial advisors to discuss social security to avoid losing clients and prevent costly mistakes.
According to the Nationwide Financial Retirement Institute, most financial advisors do not discuss social security, yet 4 out of 5 surveyed individuals who are retired or 10 years from retirement say they would switch financial advisors if their advisor didn’t talk about it. With clients so interested in social security, why would this be something advisors would avoid?
David Giertz thinks this is due to social security being a very complex topic to discuss. The Social Security Handbook contains over 2,700 rules. However, not discussing social security with clients can have serious detriments. Turning on social security too early can result in a loss of as much as $12,000 annually. This loss can be as significant as $300,000 over 25 years.
Nationwide Financial also found that financial advisors can still assist clients in managing their social security benefits even when dealing with unforeseen medical conditions and expenses. Retirees who work with an advisor are 16 percent less likely to have health problems interrupt their retirement plans and 18 percent less likely to have their plan disrupted by medical costs.
David Giertz is a registered financial advisor in Dublin, Ohio. He received his Master of Business Administration from the University of Miami, and has over 31 years of financial planning experience. He has served as Director, President, and Senior Vice President at Nationwide Financial, and the company’s profit revenues have risen by 38 percent to $17.8 billion under Giertz’s leadership.