Can you maximize your social security benefits in order to increase benefits, by using a reverse mortgage?
The answer is simple terms is: Yes, you can.
Let’s get into the weeds on this and talk a little more. Here is the biggest upside to delaying your social security benefits – the longer you wait to file, the higher your benefit will be. Benefits increase generally by 8% for each year you delay filing.
Most people can file between the ages of 62 and 70. Your benefit at age 62 is significantly lower than your benefit will be at age 70. When social security benefits are delayed, beneficiaries will see a permanent increase in their monthly benefits during their lifetime. So, waiting makes sense, right? It does, except the real question is do you need that money now at age 62 and if you wait, what do you do for that income in the meantime?
If you wait until age 70 to file, but you have already stopped working, what do you do for that income now? A reverse mortgage can be an answer to this question.
Exploring the possibility of using a reverse mortgage on your home to supplement your monthly income stream is wise to do. If you don’t then you will never know if it is a viable option. Education is key to any process. Funds from a reverse mortgage have no bearing on how much social security you can receive and when you can receive it. That’s why this can be a complicated subject. It is important to consult with financial professionals to explore and verify your options.
Since most retirees are counting on this income from social security when they can get it, making the decision to delay this benefit can be confusing. That is one main reason that many people in their 60s are actually exploring and utilizing a reverse mortgage to fill in any gap that may exist with social security payments. If you are thinking that you may run out of money during retirement, then a reverse mortgage might supply an added financial option you had not thought of before. This loan, which was designed and is insured by FHA, supplies a way to tap into home equity, yet has no contractual monthly required mortgage payments. Living on a fixed income can be a scary sight for most of us, especially when skyrocketing prices abound on the basics such as food and gas – which is currently happening now in 2022.
Social Security rules can be complex, especially when comparing benefits between two people. The most common error is not finding out what YOUR actual benefits are for yourself. Avoid listening to the media spin cycles and fall prey to the all-too-common rumors that social security will run out of money.
