Did you know that you may be able to defer your Social Security as part of your financial planning? By doing so you may be able to increase your benefit amount once you begin drawing payments.1
However, if you are concerned that your cash flow won’t be enough to meet your needs in the meantime, you may want to consider a reverse mortgage.
A reverse mortgage loan enables you to tap into a portion of your home’s equity and eliminate your monthly mortgage payment.
With the additional money this may free up each month, it may be possible to postpone accessing your Social Security.
Here’s a scenario showing how Susan Parker deferred her Social Security payments.2 As a systems project manager, Susan Parker earned $60,000 per year until she lost her job nine months ago.
At 63 years old, she was considering retiring early since finding a job was proving to be difficult. Susan was hesitant to do this, knowing that it would mean lower lifetime Social Security benefits than if she were able to defer her payments until age 70.
However, she felt stuck, since she had already exhausted her unemployment benefits and was pulling from her savings to pay her mortgage and other living expenses.3
The solution for Susan was to obtain a reverse mortgage loan. Through this loan, she was able to pay off her existing mortgage and improve her monthly cash flow by $1,500. She chose to receive her remaining loan proceeds in equal payments of $1,091 for as long as she lives in the home.
Being in excellent health, Susan expected to live well into her early 80s. With these additional sources of funds, she could defer her Social Security benefits until age 70, resulting in increased monthly benefits of $847 or $22,596 over her lifetime.4
Deferring your Social Security and obtaining a reverse mortgage loan might be worth exploring as part of your financial planning. Could this work for you? Would it enhance your lifestyle and ease some of your financial worries?
If you would like to learn more about this possibility and discuss it with a licensed reverse mortgage advisor, call 1 (800) 976-6211. Or, to learn if you might be eligible for a HECM loan, use our calculator (located at the top of this webpage) today.