Social Security Changes Give More Way to Reverse Mortgages
We heard it for sometime that changes to the Social Security program were coming, and those changes came on November 2015 in the form of the Bipartisan Budget Act. Perhaps the most significant policy change is that of the "File and Suspend " claiming strategy in which under the new law if a person chooses to File and Suspend benefits, then that would also suspend benefit payments to anyone else who might be collecting on that person's account. Previously, a spouse who had reached their Full Retirement Age was allowed to apply for Social Security benefits and immediately request that payments be suspended thus allowing his/her spouse to collect 50% of the worker's Full Retirement Age amount plus allow the worker to delay retirement credits for himself/herself until age 70 to request a lump sum repayment. In short,it was viewed by many as a loop hole in the system that allowed retirees to collect more from the Social Security program, and now that is no longer a strategy.
This change has only further emphasized the need to review a reverse mortgage in retirement. A reverse mortgage has long been considered a program to help supplement retirement income, and more recently as a retirement planning tool to help increase cash flow. One way is by utilizing a reverse mortgage prior to claiming Social Security benefits in order to maximize those benefits by delaying drawing until reaching Full Retirement Age for Social Security. This strategy is sure to be become more common with the recent changes mentioned above, in addition to the continual support from retirement experts who are agreeing that a reverse mortgage should at the very least be considered during retirement.
Read more about the recent changes to the Social Security program here.
www.reversemortgagecertifiedprofessional.com
This change has only further emphasized the need to review a reverse mortgage in retirement. A reverse mortgage has long been considered a program to help supplement retirement income, and more recently as a retirement planning tool to help increase cash flow. One way is by utilizing a reverse mortgage prior to claiming Social Security benefits in order to maximize those benefits by delaying drawing until reaching Full Retirement Age for Social Security. This strategy is sure to be become more common with the recent changes mentioned above, in addition to the continual support from retirement experts who are agreeing that a reverse mortgage should at the very least be considered during retirement.
Read more about the recent changes to the Social Security program here.
Rick R. Rodriguez
Certified Reverse Mortgage Professional (CRMP)
NMLS# 473353
Toll Free (877) 500-0454
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