Back in the old days, older adults could comfortably retire with several sources of income, mainly from savings, pensions, and Social Security. However, as more and more companies tightened pension and Social Security accesses, this proves to be a complication for older adults to retire early. Combined with the current global economic crisis, older adults find it challenging to manage their financial future. As such, in this article, we’ll be addressing a few ways that older adults can boost their income, even while living in an independent or assisted living community.
Retire Later in Life
As of 2021, older adults are entitled to their Social Security benefits as early as 62 years old, though the full benefits can only be accessed when they reach the full retirement age of 66 years old for those born in 1955. For older adults born in 1960 and after, the retirement age is 67 years old. However, it’s advised for all to delay retirement until the age of 70 as this will increase the benefit amount, thus boosting monthly income.
Head Back to Work
Despite receiving Social Security benefits or have fully retired, older adults can consider making the best out of their free time by taking on a full-time or part-time job to earn some extra cash on the side. This applies especially to those who are still physically active. At a time when remote working opportunities are aplenty, older adults can take advantage by becoming freelancers. Professions such as telemarketing, web development, and writing are always in demand and popular among retirees.
Don’t know where to start? Older adults can hop on The National Council on Aging’s JobSource platform, which provides tips on training and allows users to explore their interests and skills. Alternatively, the Senior Community Service Employment Program can be a great way for older adults with minimal to no income to receive job training and find either full-time or part-time careers.
Leverage Home Equity
There are some ways to do this:
- Home Equity Loan
Otherwise called a second mortgage, this method offers older adults a lump-sum loan with a fixed term and rate for repayment. This is suitable for those who have a home improvement project or would like to consolidate debt.
- Home Equity Line of Credit
By opting for a home equality line of credit, older adults can receive cash whenever they need it and only pay the interest based on the amount borrowed. This method is generally used for emergency funds and significant expenses like home renovations.
- Reverse Mortgage
A reverse mortgage allows older adults to convert their home equity to funds in the form of a lump sum, line of credit, or fixed monthly payment. Homeowners do not have to make any loan payments, and all interest accumulated over the years is added to the loan. Homeowners must repay the reverse mortgage upon moving or selling the property, or by their family members if they have passed away.
Obtain Financial Help from Family Members
It can be difficult for some families to discuss finances, but it’s necessary to be transparent in their financial situations to provide for their loved ones adequately. Older adults can seek help from their children or relatives to pay for medical bills and daily expenses. However, adult children should be wary not to exceed their budget, and that these additional costs do not interrupt their financial goals.