Retirement worries keeping you up at night?
We know that as we grow older we can get by on 6-7 hours of sleep rather than 8-9 we savored when we were younger. Wondering about the uncertainty of retirement is keeping many of us awake nights wondering if we have planned well enough to survive the next 20-30 years.
What is #1 when it comes to retirement worries?
According to a survey by the Society of Actuaries, paying for long-term care was found to be one of the top concerns for retirees and people nearing retirement.
Related: The New Reverse Mortgage that works
Pre-retirees, specifically, are most concerned about long-term care as well as inflation, in retirement. Both surveyed at about 69% followed by paying for health care, as a whole, at 67%, the survey found.
What will you do if your “involuntarily retired”?
When my father was “involuntarily retired” in 1980 (he was 60 years old), I don’t know if he planned to live another 30 years but he did, passing away just before his 90th birthday in 2010. Imagine, his retirement lasted almost as long as his working career.
Who can plan for a 30 year retirement?
Of those surveyed, 17% of pre-retirees plan for five to nine years in retirement, 19% plan for ten to 14 years and 38% have either not thought about their planning horizon or do not plan ahead.
Credit obligations are #2 when it comes to retirement worries
Not only are health care costs keeping us up nights, so are credit obligations. Inflation and interest costs can be a huge burden for retirees with a fixed income. The leading form of debt for pre-retirees was found to be mortgage debt, at 52%. This was followed by credit card debt, at 48%, and car loans, at 40%.
The New Reverse Mortgage to the Rescue
Since the inception of the Reverse Mortgage program in 1989, HUD has continually looked for ways to match it to the needs of retirees. Seniors who retired in the 1980s likely weren’t planning for a 30 year retirement. But seniors started living longer and the “old” reverse mortgage didn’t prove to be a viable retirement tool.
Introducing the Retiree’s Equity Line of Credit (RELOC).
The RELOC provides the flexibility of use offered by a traditional line of credit. Like all Reverse Mortgage programs the senior homeowner can pay as little or as much as they like each month. This allows seniors to worry a little less when confronted with rising health care costs and all those other costs that cross our minds at three in the morning.
The New Reverse Mortgage isn’t for everyone…but it could be!
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.
Some of this information appeared on reversemortgagedaily.com.