For the first time in two years Social Security benefits will increase by 1.7 percent. While it does not cover the 2 percent increase in inflation in the last year the added benefits will surely be welcomed by those collecting Social Security.
The cost-of-living adjustment for Social Security is base on the Consumer Price Index, the government’s key inflation reading. However, this system is not an accurate reading for seniors since the spending habits of active workers is much different from today’s seniors.
In addition to the increase of benefits for those collecting Social Security so has the amount of wages subject to the Social Security tax. That amount has increased from $110,100 to $113,700 in the next year. That means higher taxes for nearly 10 million workers and their employers, according to the Social Security Administration.
Today’s seniors are spending record amount of money on health care and care giving. Relying solely on Social Security can put thousands of retirees and seniors in a financial hole. If you are thinking about your financial budget and are unsure how you will be able to afford rising medical costs and pay your mortgage, a reverse mortgage could be the answer.
A reverse mortgage eliminates your current mortgage* (if you have one) and if you have any additional equity you can use that tax-free** cash for anything you want. Currently there are no income or credit requirements for a reverse mortgage and you are never required to make a payment as long as you live in your home. You can have the peace of mind knowing you can live in your home for the rest of your life.
For more information on the increase on Social Security check out ssa.gov.
Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest retail reverse mortgage lender in America. Check out our reverse mortgage calculator to see how much tax-free** cash you can qualify for. Or give us a call at (800)401-8114 to talk to one of our licensed professionals. They can discuss your financial situation with you and determine if a reverse mortgage makes sense for you and your financial goals.
*Homeowner is still responsible for taxes, insurance and property maintenance.
**Please consult with your financial advisor.