When should you begin to take your Social Security?
If you are able, a common recommendation from Financial Planners is to delay taking your Social Security because for every year you delay past your full retirement age (up to age 70), you get an 8% increase year over year. A senior’s monthly Social Security benefit is a whopping 76.6% larger monthly income if a senior claims the benefit at 70 instead of 62!
But, how do you do it? Well, there are various ways to supplement your income so that you are able to live comfortably.
Many choose to keep working, whereas others will take heavier draws on their IRA or other retirement sources. In our economy, it is difficult for anyone to find a job. Unfortunately, it is even tougher if you are older. Also, tapping into your retirement portfolio and other savings really stings in a down market when you are waiting for it to recover.
However, an increasing amount of Baby Boomers in Colorado who understand the benefits of delaying their Social Security in order to maximize benefits are turning to supplementing their income with a Reverse Mortgage. In a down market, rates are low. Really low! Use your “bricks and sticks” savings account (your home equity) when rates are low and as the economy improves and rates go higher, transition back into your portfolio after it has recovered. Eventually you may choose to stop using the Reverse Mortgage but continue to have it as a nest-egg for future use.
The attached linked article has nothing to do with Reverse Mortgages, but it does do an excellent job of clearly indicating what groups should (if they are able) delay their Social Security Benefits and why.