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Delaying Social Security Pay

Taking Out A Reverse Mortgage To Increase 
Social Security Pay.

Article By : Patrick Mansfield | U.S. Gov Connect
Delaying Social Security Pay

According to the Social Security benefits website, if you begin collecting Social Security benefits at 62, you will be eligible for 80 percent of full retirement age benefit (full retirement age is currently 66). If you wait until 70, benefits could increase an impressive 32 percent more than the age of 66. Statistics show benefits could see an average annual increase anywhere between three and eight percent of individuals that collect earlier.

If you are unsure how you could take advantage of delaying Social Security benefits, there is an option if you are 62 or older and own a home. A reverse mortgage is an excellent way to delay collecting Social Security. With a reverse mortgage, you eliminate any current mortgage and collect any equity available as tax-free funds that can be used as you please. If you are a senior and a homeowner with limited funds, applying for a reverse mortgage is a great way to manage finances and delay collecting Social Security.

Insured by the Federal government, the reverse mortgage loan has helped seniors stay in the homes they have lived in since the 1980s. Thousands have applied for the program and taken advantage of the many benefits that come with a reverse mortgage. Some of the benefits iclude:
  • An end to a monthly mortgage payment.
  • Any funds received as a result of the reverse mortgage are tax-free.
  • These funds do not affect Social Security.
  • You continue to live in and own your home.
For generations, Social Security has been an asset many seniors have depended on to manage financial stability. Unfortunately, even between Social Security and any retirement benefits, it can still be a struggle. Often, these resources cannot be the only stream of income. An Employee Benefit Research Institute report released in 2011 found that nearly half of those aged 56 to 62 were at risk of not having enough retirement income to cover basics like food and housing costs despite retirement planning. Although Social Security is certainly helping, it is unlikely to cover all of one's monthly bills.

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