Why Social Security Should Not Be Your Only Source of Retirement Income
With all the emphasis that goes into retirement planning, not enough attention is paid to actual retirement income. Retirement income can be defined as the pool of money you have available to in your retirement that allows you to pay bills and enjoy life. Unlike income in your working years, you may not need to invest as much of your money during retirement because the time has come to spend it rather than save it.
Citizens Lending Group wants to help seniors in California, Pennsylvania, and Florida make the best decisions about their retirement and their finances. Contact us today to learn more about reverse mortgage requirements and if a reverse mortgage loan is the right choice to help supplement your retirement income from Social Security.
Retirement Income Beyond Social Security
A reverse mortgage can be a great way to supplement the money you are eligible to receive from Social Security. While you can begin taking some Social Security benefits around age 62, the average monthly check increases significantly if you wait until age 66 or even 70. You may think you need to continue working during this time in order to cover the income gap but that may not be entirely true.
Reverse mortgage eligibility also starts at age 62, so if your mortgage is entirely or mostly paid off you could be enjoying the equity built up in your home while you wait for other forms of retirement income to kick in. The benefit of a reverse mortgage is that unlike other lines of credit it does not have to be paid back right away. These loans must only be repaid when the final borrower is no longer living in the home or if the home is sold. Other forms of credit would require you to start paying monthly installments. Therefore, rather than augment your retirement income with a lump sum or payout over time, traditional credit lines actually take up more of your fixed income. A reverse mortgage on the other hand, could add to your Social Security payouts until you are ready to sell your home.
Eliminate Mortgage Payments & Expand Your Retirement Income
Another benefit that reverse mortgages add to your retirement income is the chance to pay off your existing mortgage or even buy a new home without adding to your monthly bills. A reverse mortgage can be taken for the difference between what you owe on your house and what the house is worth. If your loan is nearly paid off part of the balance from the reverse mortgage would go to paying it off completely, thus reducing your monthly bills and extending the distance your Social Security checks go each month. A reverse mortgage purchase works in a similar way allowing you to purchase a new home without incurring additional monthly mortgage payments.
Contact Us to Learn More About Adding to Your Retirement Income
Contact us today to learn more about reverse mortgage requirements and how a reverse mortgage loan can add to your retirement income to make your Social Security payouts go further.