COVID has put life transitions on the fast track for many Americans over the last 9 months.
Millennials – once reluctant homebuyers – are now making purchases in waves thanks to historically low mortgage rates and low housing inventory.
Recent trends also indicate a surge of early retirement among seniors, as businesses close or downsize – and as older working adults weigh the health risks of working through the pandemic.
This leaves some uncertainty for older Americans who haven’t yet saved enough for retirement and need cash flow for healthcare and housing costs.
Reverse mortgages, when used strategically, have emerged as ideal financial solutions for the rising numbers of seniors retiring & now aging in place in their homes.
More Americans Pushed to Early Retirement, Financially Ready or Not
A recent study found that 2.9 million workers ages 55 to 70 have left the labor force since March as a result of increased health risks and decreased job prospects.
Study researchers also predicted that if these exits continue at the same pace over the next three months, an additional 1.1 million workers in this age group may leave the workforce. This would be a total of 4 million people potentially pushed into retirement early due to the pandemic.
Seniors who haven’t yet padded their retirement accounts with enough funds to maintain their lifestyles – and enough funds to cover current and future healthcare costs – may find themselves strapped for cash in the new climate.
More Seniors Opting to ‘Age in Place’ At Home
In the post-pandemic world, early retirees with sparse retirement accounts and those already retired, but lacking cash flow, are facing the need to downsize and plan for future care.
But with senior housing, nursing homes, and other group care settings weathering widespread COVID infections, more seniors are now opting to ‘age in place’ in their homes safely and in less risky scenarios.
A recent report also found that Americans will need to save even more for retirement now due to lower bond yields brought on by the pandemic. And they’re expected to continue into 2021.
Reverse Mortgages Can Help Fund Aging in Place
Reverse mortgages have emerged as a valuable solution to provide needed cashflow for early retirees to fund their lifestyle and healthcare costs. They’re also positioned as the means to age safely in place while the pandemic continues.
These mortgages allow older adults to access the equity in their homes while still maintaining ownership, remaining on the property title, and living in comfort.
Learn more about reverse mortgages and how they may be an ideal option for early retirees.
Reach Out to Our Certified Reverse Mortgage Specialists to Learn More!
Reverse mortgages can help keep retirees living longer in the comfort of their own homes – and help keep them in a safe living scenario during the pandemic. If you’re considering this solution for yourself, a loved one, or client, reach out to our Reverse Mortgage Specialists to discuss if the program is an ideal option.