RM: You also have a product, RSSA Roadmap, that is available directly to consumers, as well. Tell us more about that product. MS: It allows us to help individuals. Individuals can buy the household version of the software, and we walk them through the input, step by step. It does the analysis, and then we provide the live support because they will still have questions. We are unique in that we offer tremendous support, not only to our RSSAs and their clients but also to someone who uses our software for their situation. RM: You advise people to start with the basics, such as setting up an account with My Social Security at SSA.gov, and then go from there. But what are some of the common mistakes that people make? MS: Most people are aware that you can claim as early as 62, but you’re going to get a cut in the benefit unless you wait until full retirement age. And once you reach full retirement age, by waiting to collect, your benefit amount increases eight percent a year up to age 70. The difference between collecting at 62 and 70 for an individual is an increase of 77 percent on that benefit if they’re able to wait. So, claiming age is a huge component. People also underestimate how long they’re going to live. And this ties in with reverse mortgages, too. I mean, we don’t know how long we’re going to live. But we should plan for the maximum and have a backup if we need it. There’s nothing better than a guaranteed monthly benefit amount. So that is another mistake: underestimating life expectancy. RM: What do most people not understand about Social Security? MS: This whole issue about the 2030s and hearing that Social Security is running out of money. That is such a myth and misunderstanding. It’s not going to go bankrupt. It’s a pay-as-you-go system. The amendments that the wise group of bipartisan individuals made in 1983 sustained the Social Security program for 50 years up until the 2030s. The changes they made to the program at that time created a surplus in the trust fund, and that surplus is being used up. So, if nothing is done to change the program, that surplus will be gone from the trust fund in the early 2030s. But for every employee who’s working, they’re still paying in. It’s just that there are not enough workers to cover all the beneficiaries. That’s why changes need to be made; it is hugely important. There are minor tweaks to a variety of rules that would extend the longevity of the program for decades if we could just get a bipartisan group to deal with it. But that probably won’t happen until we are right up against the wall. And that’s what we let our RSSAs know, too. That is when they’re going to become extremely valuable. When changes are made to the program, the need for education and information from the citizens will increase like crazy. Thomas A. Barstow, senior editor of Reverse Mortgage, is a writer and editor based in Pennsylvania. “There are a lot of confusing things about Social Security, and we want the designation to be the gold standard of Social Security advice.” REVERSE MORTGAGE /MAY-JUNE 2024 29
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