Early retirement can have a dramatic effect on the amount of Social Security payments an individual may receive. However, deferring Social Security benefits can be a very appealing idea for those that are in a position to do so. By delaying retirement benefits until the age of 70, deferred payments can grow by an additional 8% a year, greatly surpassing the rate of inflation which has averaged approximately 3% over the past 5 years. If delaying retirement benefits seems like a suitable option, one point to consider is to sign up ONLY for Medicare at age 65. It is important to note that not opting to sign up for Medicare within 3 months of eligibility can delay coverage and become more costly. A good way to supplement your income in retirement is with a reverse mortgage. With a reverse mortgage you can access the equity in your home and receive monthly payments allowing your social security benefit to grow. Listed below are a few payment distribution options to supplement your retirement income with a reverse mortgage:
- Lump Sum – the full amount at closing.
- Tenure – fixed monthly payments for as long as the homeowner resides in the current residence.
- Term –equal monthly payments for a fixed number of years.
- Line of credit – taking out any amount necessary until the credit line is depleted.
- Any combination of the above for even more flexible options.
Please feel free to contact our CRMP (Certified Reverse Mortgage Professional), Mehran Aram or any one of us at The Aramco Group with any questions you may have regarding reverse mortgages. One of our specialists will be more than happy to assist you.