How a Reverse Mortgage Can Help You Retire When You’re Ready
Believe it or not, there are many Americans who just don’t want to retire. They enjoy their jobs or careers and the social connections and purpose it brings them, as well as the disposal income. Unfortunately, there is a large percentage of individuals who don’t have the luxury of choosing whether or not they can retire.
According to a study from the National Reverse Mortgage Lenders Association, 47 percent of Americans who say they’ll work past the age of 65 say it is out of financial necessity. Whether they haven’t saved enough, have too much debt, or are concerned about Social Security covering their daily needs and healthcare costs, retirement – especially at 65 – seems out of reach. But a Home Equity Conversion Mortgage (HECM), a federally-insured reverse mortgage program, could be the solution to help those who find themselves ready to retire, or in need of retiring, the chance to do so.
Using the equity in your home, you can generate a source of income while still living in your home. In fact, with a reverse mortgage, you can put off drawing your Social Security benefits until a later time, which lets your monthly benefit amount increase. Suppose you were born in 1956, your earliest full retirement age is 66 and 4 months. If you start collecting your benefits at that exact age, you’ll receive 102.7% of your monthly benefit. But, if you put off collecting your benefits, your monthly payment continues to increase until you reach age 70. With a reverse mortgage as a way to make ends meet, if you can wait until age 70, you will receive 132% of your benefits.
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More on Reverse Mortgages & Retirement
By tapping into the value of your home’s equity, seniors have an option of retiring when they’re ready and still maintain their financial independence. Funds can be used to cover medical expenses, necessary home remodeling and repairs to improve homeowner safety and mobility, home electrical and plumbing systems, and much more.
A reverse mortgage can offer seniors financial flexibility in their retirement years. To learn more about the benefits and requirements, speak with a Certified Reverse Mortgage Professional (CRMP) who is expertly trained to ask the right questions and help you determine if a reverse mortgage is right for you.
Learn more about how people are using home equity conversion mortgages for purchasing homes:
Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.