Many working Americans are worried about their financial security during retirement and Covid-19 has worsened their concerns.1
Simultaneously, the pandemic has triggered some to either retire or consider retiring sooner than expected. With these concerns, retirees will want to ensure, when leaving the workforce, they are positioned to manage their investments, know when to collect social security, and are aware of alternative sources of income they may have access to.
Take inventory of your investments since they will likely be a source of income during retirement. It is ideal to rely on various income streams, including the use of investment dividends and interest to cover your living expenses without tapping into the growth or original investment. Speak with your financial advisor to determine how you can utilize your investment portfolio during your years of retirement.
Social Security Benefits
Consider delaying social security benefits until the age of 70. Even though you are eligible at 62, if you wait until 70, you will be able to collect the full monthly payout, which can result in higher benefits throughout the beneficiary’s lifetime.2
Some may decide to delay retirement to improve their financial outlook by working longer. However, trying to save for retirement later in your career could lead to financial stress during your golden years. Research done by the Urban Institute discovered that 56% of those with full-time employment in their early 50s are eventually laid off, with the majority never earning as much at ensuing jobs.3
You also may leave the workforce unexpectedly due to layoffs, illness, or caretaking obligations.
Tapping into Your Housing Wealth
Another asset many retirees have is their home and tapping into their housing wealth may be able to help during retirement. A Home Equity Conversion Mortgage (HECM) also known as a reverse mortgage, allows qualified homeowners, who are 62 or older, access to a portion of their home equity as funds to help supplement retirement income.
Reverse mortgage borrowers do not have to repay the loan as long as they live in the home as their primary residence, pay property taxes and insurance, and maintain the property.4
To learn more about how a reverse mortgage can help maximize and extend your retirement savings, contact a licensed loan advisor at 1.800.976-6211.
4You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.