Adding Social Security to a Retirement Plan May Require a Reverse Mortgage in the Future



With the much-discussed “silver tsunami” predicting an increase in the proportion of older people in the United States from 56 million today to over 78 million by 2035, the importance and visibility of social security benefits in pension plans for a growing proportion of Americans cannot be overstated. Making the best possible decision when it comes to receiving Social Security benefits will become more important over time as the first step in retirement planning.

This is why the inclusion of social security in retirement planning may require the inclusion of other professionals, including real estate professionals and even reverse mortgage lending specialists. This is stated in a new column of the Financial Advisor magazine.

“Social Security Consulting Services provide consultants with a natural transition to financial planning for retirement and the opportunity to help retirees make the right financial management choices as they age,” the article says. “With the advent of self-funded employer-funded retirement plans in the mid-1970s, many of today’s workers are accustomed to managing their own investments.”

This has led to a shift in the practice of retirement planning from planning savings and growth to developing a retirement strategy that is tax efficient. It is also a disruptive change that could lead to a new need for a financial advisor that the retiree may not have anticipated earlier.

“Retirement planning based on the sequential withdrawal of certain retirement and non-retirement accounts in the most tax-efficient manner can provide clients with the highest stable standard of living throughout retirement age,” the article says. “This type of planning can involve a large number of ever-changing variables and may require the services of a group of other retirement professionals. These include taxes, Medicare, long term care, life insurance, estate planning, and possibly real estate and reverse mortgage specialists. “

The article says that partnerships between tax and finance professionals have always been “very natural,” and many in one area can get certified in another.

“Financial professionals with an understanding of how social security taxation works have a valuable opportunity to help reduce their clients’ tax liability at retirement,” the article explains. “If maximizing Social Security benefits requires a waiting period of several years to apply, using retirement funds to close the income gap can help reduce fully taxable minimum benefits, as well as lower income tax and, in particular, taxation of benefits. social security. “

Read article at the Financial Advisor.


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