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Recent news that Social Security’s insolvency could hit a year earlier than initially expected wasn’t exactly welcome by seniors reliant upon the funds the service provides. Combined with ongoing issues surrounding Social Security overpayments and the potential for those disbursed funds to be clawed back, seniors may find themselves in a precarious financial position this July. Retirement savings and pensions, already increasingly rare, only go so far to help make ends meet. And if the safety net Social Security has been providing is starting to deteriorate, these seniors may find themselves looking for alternative supplemental income.
Fortunately, there are multiple avenues worth exploring, some of which are easily overlooked at first glance but which can still provide valuable and consistent income. Still, with financial resources limited, it makes sense for seniors to take a strategic and thorough approach before taking their next step. That starts with exploring the three sources below that could supplement their Social Security funds now.
See how much you could get paid each month with a reverse mortgage here.
3 ways seniors can supplement their Social Security now
Here are three ways seniors could start boosting their monthly income right now:
Reverse mortgages
A reverse mortgage is one of the better and more effective ways to supplement your Social Security now, as the funds come directly from the house you’ve paid into. Only available for homeowners who are age 62 or older, reverse mortgages provide monthly payments to owners, deducted from their home equity. Those payments will only need to be paid back, however, when the home is sold or in the event of the death of the homeowner. Still, if you’re looking for a way to secure reliable income and don’t want to have to borrow to get it (like you would with a home equity loan), a reverse mortgage could make sense for you now.
Learn more about your reverse mortgage options here.
Annuities
If you need reliable income, it may feel counterintuitive to spend a large portion of the money you have saved on anything extra right now. But an annuity could be worth it. In exchange for providing a lump sum of money to an annuity provider, you’ll then receive monthly payments for life in return. The higher an annuity you purchase, the greater your payments will be. But the real benefit here lies in the reliability and security an annuity provides, as it can be counted on regardless of what happens in the economy and long past your initial purchase amount has been exhausted.
Learn more about opening an annuity here.
Personal loans
Arguably the least favorable of the three options on this list, a personal loan can still help fill the financial gap that’s been recently uncovered by Social Security shortfalls. This will require taking on additional debt and interest rates here, around 12%, are markedly higher than they were at the start of the decade. But you don’t necessarily have to use all of the personal loan funds you’re provided, as they can often serve as an emergency fund where needed. And with alternatives like credit cards accompanied by interest rates just under a recent record high, this can be one of the less expensive ways to supplement your income right now.
Get started with a personal loan online now.
The bottom line
Concerns over Social Security shortfalls may not be resolved overnight but by exploring their alternative funding sources, seniors can better determine their next steps. Reverse mortgages, annuities and personal loans can all help, perhaps to a considerable degree. So take the time to research all three right now and remember that you don’t necessarily need a large amount of money to help as just enough financing to cover any gaps left over by Social Security will likely suffice.
