Depending on your circumstances as someone approaching retirement age, the coronavirus emergency may have touched your financial footing in some way.
As millions of Americans face financial stress, reduced hours, and even layoffs, some pressures may go beyond loss of income or employment. It’s also hitting retirement planning.
The lasting effect of retirees is filled with questions as some may exit the labor force years earlier than expected.
If you find yourself in this predicament, here are some options you can explore to secure your retirement future.
Consider early Social Security
Beginning at the age of 62, you can take advantage of your Social Security benefits.
Before the coronavirus, claiming Social Security benefits at the earliest possible date may have been a non-starter.
However, as your financial needs change, it may be a prudent decision, even if your benefits are not yet maximized.
It’s important to remember if your full retirement age is 66, you may see a 25 percent reduction in benefits by enrolling early.
Change of plans
It’s OK to adjust your retirement plan. Today’s economy requires a new mindset, especially in transition.
Take the time to consider adjustments to allocations. Depending on your situation, be more aggressive with money-saving strategies.
The most important priority is to bring clarity to your income streams.
Other employment opportunities
If your savings and other retirement accounts are not at an ideal level, you might evaluate employment opportunities for an income stream.
Part-time work can be a worthwhile endeavor as you iron out your complete retirement plan.
If you’re still a few years from retirement, closely evaluating your work options to fill the gap until then is sound planning and can help ensure a comfortable retirement.
Home Equity Conversion Mortgage
If you’re close to retirement age, then you may qualify for this mortgage option.
New retirees can immediately boost their buying power, retain liquidity and take full advantage of their financial resources.
A Home Equity Conversion Mortgage* (HECM) usually requires a 50 percent commitment; in return, the borrower will no longer make monthly payments as residents of the home.
Please contact us today to learn more about this opportunity to boost your income and to eliminate monthly mortgage payments so you can make the most of your much-deserved retirement life.
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.