Millions planning to delay their retirement
The bursting of the housing bubble has caused millions of families to delay retirement. According to a recent survey, 20% of pre-retirees made plans to postpone retirement last year. (Note: this pre-retiree finally has a retirement date, lunch time the day of my funeral)
Are you “underprepared for retirement?
According to Frank O’Connor, vice president of research for the Insured Retirement Institute, “We’ve really got a generation here that is very concerned about their level of retirement savings, they aren’t confident about their preparations, and the solution in their minds is that they’ll just work longer”.
The problem is the ability to work longer is hardly guaranteed. Older workers have to be healthy enough to work which is only partly in their control and the work has to be there. Both the ability to go to work and the ability to find employment are fairly significant ifs. Prudent retirement planning means considering having a Plan B and Everyone needs a Plan B
Preparing to delay retirement is hard work
Without question life expectancies continue to rise, so most of us will live well into our 80s and an increasing number into our 90s. Preparing for a longer retirement requires more extensive planning including adding a reverse mortgage when appropriate.
We also have to consider the rising costs of just about everything. No one knows yet how the whole health care issue will play out but it’s near certain that uncovered medical costs will only continue to rise, as will the cost of housing, transportation and every day living expenses.
For many of us our parent’s retirement plans were simpler, a steady pension and income growth was more pronounced. Today’s plans are tied to the mood swings of uncertain financial markets, so we can’t afford to let our largest asset sit still.
Delay retirement using The New Reverse Mortgage
The number one reverse mortgage option is the FHA Home Equity Conversion Mortgage (HECM). The keywords are Equity Conversion. A reverse mortgage now allows you to convert a portion of the equity into a real asset that can be used to supplement the retirement plans you already have in place. The HECM offers a number of variations that can be customized to fit almost every retirement plan.
Interest rates are still hovering in record low territory, which means you have access to more cash today and at a lower cost than you’re likely to see in a few years.
The New Reverse Mortgage isn’t for everyone…but it could be!
Is a Reverse Mortgage right for me?
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 courtesy of Janet Kidd Stewart, Tribune News Service