We all look forward to that glorious day when we can retire. Traveling, recreational activities and great times with friends and family may be how we spend our time. The closer we get to retirement age however; we may realize that we may’ve not saved enough to retire in the lifestyle that we had hoped.
Will you have to delay your retirement?
You’ve spent most of your life working, raising a family and working towards your career goals. Many of us may not think about the finances needed for retirement until much later in life. While a 401k and an IRA are great to add to your nest egg, will they be enough? What about social security? Social security used to be enough to live financially stable in retirement years during our grandparents’ generation. Now many seniors are finding that social security is simply not enough to handle the monthly expenses and unique needs in their later years.
The Social Security Administration released their changes to the Cost-of-Living Adjustment (COLA) showing an increase in 2017 of only 0.3 percent over 2016 distributions. Retired workers who earned $1,355 prior to the increase will now receive $1,360. Will that $5.00 make a big impact on your monthly expenses? For most, the answer is no. But what if you are not retiring this year? Next year’s COLA is not expected to be much higher. Over the past eight years, the SSA COLA has only been above 2% once–in 2012.
To help curb this financial need, some seniors are now moving back in with their children creating multi-generational households. While this works well for certain families not all seniors want to move back in with their children. They prefer to stay in their own home. Yet, unexpected medical expenses, home improvements and desires for travel can seem out of reach when you are working with a limited budget. Working a part-time job, some seniors are able to cover certain expenses. Retirement years are supposed to be relaxing years. Not years that you have to work to cover expenses, right? So what do you do if you are not financially ready for retirement or find yourself in need of additional financial security during your retirement years?
Retirement planning made simple
Some seniors who are approaching retirement consider delaying retirement to allow themselves a few more years of earning their accustomed income to help save more. This does not have to be the case however. A reverse mortgage may help in allowing you to retire and still live the financially stable life you may have imagined.
There may still be some misunderstandings regarding reverse mortgages and other financial solutions may be better suited. However, a reverse mortgage has proven to be a powerful tool for seniors, ages 62+ to gain financial security and independence. While some seniors are taking advantage of reverse mortgages, others may still have questions. An experienced lender should be contacted to help fully address any concerns about the product.
Unlike other loans such as home equity loans, there are no monthly mortgage payments required with a reverse mortgage. The loan can be repaid at any time and the owner remains 100% on the title to the property. It is important to note that while no monthly mortgage payments are required, borrowers will be responsible for maintaining the hazard insurance premiums, real estate property taxes and any home owners’ association fees current as well as expenses for the upkeep and maintenance of the property.
Many seniors find that this is the financial tool they have been looking for to increase or maintain their quality of life in retirement. Is a reverse mortgage right for you?
To find out more about reverse mortgages and whether it is right for you, talk to the lending experts at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind.