Due to the COVID-19 pandemic, there are many reasons why people may consider retiring sooner than they planned. This could mean claiming your Social Security or pension benefits or tapping into savings earlier than planned.
Below are some things to consider to help you understand and weigh your options when considering an unexpected retirement.
Health care and other expenses
You may also be eligible for benefits and discounts that could reduce your regular expenses, especially on health care costs. These benefits are not only for low-income adults; many are based on age or the type of income you receive.
When considering retirement, it’s important to factor in your expenses. Here are a few to take into consideration as well as resources that may offer support.
Housing may likely be your largest expense in retirement. Utility expenses increase as you spend more time at home, and taxes and other home maintenance costs are a concern for many older homeowners.
If you’re among the millions of homeowners carrying a mortgage into retirement, there may be a number of options that can help you reduce your monthly costs, including refinancing, loan modifications, and repayment plans. Forbearance may be also available if you’re unable to make your monthly payments.
Another option is to consider a Home Equity Conversion Mortgage (HECM) as a way to lower housing expenses. These loans are in most respects just like the mortgage you have now except that you have the option to make low or no payments each month. They allow you to refinance your current mortgage and to tap into an ever-increasing pool of funds from your home equity. A Limited Equity Share System (LESS) can allow you to tap into equity from the residential investment or rental property you may own locally or in other parts of the country. This can be a game changer when considering how to best plan your retirement. Make an appointment on our website to discuss these options or call us today to schedule a time to chat.
Marc has 36 years in financial services and 6 years in teaching.
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