SOCIAL SECURITY BENEFITS BETTER CLAIMED LATER THAN SOONER
After much thought (arguments, considerations, compromises), you made the decision to retire — both of you –at the end of this calendar year. While the original intent had been for both of you to work until you had both reached “normal retirement age”, you have calculated that, in order to maintain your desired income level in retirement, it is going to take both Social Security benefit checks to augment the annuity and investment income you will have coming in. On the positive side, your cars are in good repair and paid for. The home itself is in good shape with no mortgage, and your hope is to spend the rest of your lives right there. There could possibly be an inheritance in your future, but you can’t rely on that and needed to find ways to secure the income flow now.
Waiting until age 70 to claim Social Security benefits has a double advantage, with monthly payments increasing by up to 8% for every year you wait; the survivor benefit will end up being larger as well. “But to take advantage of higher monthly benefits, you may need to accept some short term sacrifice, a Fidelity.com article advises.”When one spouse dies, the surviving spouse can claim the higher monthly benefit for the rest of their life.”
An alternative to consider would be tapping the equity in your home through a reverse mortgage, which would serve to cover the income shortfall at least until the older of you has qualified for full social security benefits. So long as you keep up your property taxes, insurance, and regular maintenance of the home, you will not be obligated to make monthly mortgage payments.* Meanwhile, two positive things will be happening: your social security benefit will increase by as much as 8% for each year you defer. Meanwhile, with the reverse mortgage structured as a line of credit, the unused portion of the equity still grow at the same rate as the rate of interest being charged on the borrowed funds.
Married couples optimizing their Social Security claiming decision are making use of three things, Brian Alleva explains in the FPA Journal — two worker benefits, and a potential survivor benefit.
With a reverse mortgage, Social Security benefits can be better later than sooner!
https://mutualreverse.com/david-garrison
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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