Seniors: 5 Tips to Increase Your Income
http://www.ncoa.org; September 26, 2014
In past generations, older adults looked to retire with three sources of income: savings, pensions, and Social Security.
But no more. With the decline of company pensions and markets taking a hit in the economic downturn, many seniors face less income than anticipated in retirement.
Here are 5 suggestions to boost your income and savings:
1. Consider delaying retirement
Did you are aware that by delaying the age you start to get Social Security benefits, you can increase your benefit amount?
While today’s retirement age is 66, should you wait until age 70 or later to adopt Social Security, you may see a significant rise in your monthly payment.
Check the Social Security fact sheet When to Start Receiving Retirement Benefits to find out about this important decision.
2. Determine whether it seems sensible to go back to work
Even in the event you’ve already eliminate and started getting Social Security, a part- or full-time job may help offset extra expenses.
JobSource is really a tool from NCOA that assists older adults assess their interests and skills, find training, and look for employment.
Mature workers aged 55+ with limited or no income may additionally consider the Senior Community Service Employment Program (SCSEP). SCSEP provides training and part-time community service work that for many people leads to full-time jobs. Find a SCSEP office in your area.
3. See if other programs will help with your expenses
Depending on your income, you may be eligible for the help of public and private programs that might help pay for your health care, prescriptions, food, utilities, plus much more. Use NCOA’s free screening tool BenefitsCheckUp® to see should you may qualify for any of these programs.
4. Consider tapping your house equity
If you own your house, you might want to consider freeing up income by tapping into your own home equity. There are several ways to do this, including obtaining a home equity loan, your house equity personal credit line (HELOC), or possibly a reverse mortgage.
A home equity loan, sometimes termed as a second mortgage, gives you a lump sum of money which has a fixed repayment schedule. This type of loan can be quite a good choice in case you have your house improvement project or in case you want to consolidate debt.
A HELOC lets you get money when you need extra cash simply pay interest around the amount that you borrow. HELOCs make sense should you want a “rainy day” fund or cash to pay for major purchases just like a new furnace.
A reverse mortgage is really a type of mortgage that allows seniors to convert the equity inside their home to cash to meet a wide range of financial needs. With a reverse mortgage, the lending company pays you. The homeowner can't make payments, and all interest is included with the loan. A reverse mortgage should be repaid once you move or sell the exact property or the last borrower does, or through your heirs upon your death.
To get unbiased information about reverse mortgages, read Use Your Home to Stay at Home©, the state booklet authorized by the U.S. Department of Housing and Urban Development. Before you agree to a reverse mortgage, you may be required to get counseling coming from a government-approved organization like NCOA. Learn more about reverse mortgage counseling.
5. Get financial the aid of family
If you will need cash to fund medical bills or caregiver expenses, asking your loved ones for support generally is a good way to preserve this asset.
Adult children need to be careful these extra costs usually do not disrupt their financial plans in addition to their ability to save for their own retirement. It is often difficult but essential for families to discuss finances and options realistically.
The government has made it cheaper for families to cover medical bills or elder care if the taxpayer can claim an elderly relative like a dependent. This can make it easier to support older relatives which stay at home. It also helps ease the responsibility that caregiving can place on your family. Find out much more about these deductions in IRS Publication 502.