April is National Financial Literacy Month.
It’s a good thing, because America (as a group) needs help in the area of finances.
Even the seniors.
Seniors Debt Levels Are Headed in the Wrong Direction
We traditionally think of seniors as having net worth tied at least in part to the increasing equity in their homes.
It makes sense, right? As seniors age, they eventually pay off their mortgages which helps their overall net worth.
Check these numbers out:
- 55% of people aged 55-64 have less than $25,000 in retirement savings
- Household debt has increased for 18 straight months & reached a high of $13.5 trillion in 2018
- Seniors aged 75+ are 4 times more likely to hold home-secured debt than ever before
- Retirees are taking on more debt for their children
The bottom line is that seniors can’t escape the bigger financial problems brewing with their families and children.
The Bigger Trends in America
The bad news isn’t limited to seniors. The younger crowd isn’t helping with the numbers either.
Here are a few recent statistics which may stun you:
- US credit card debt hit $870 million in December – the highest ever
- Only 46% of American’s think they’ll hit their retirement goals
- 7 million Americans are 3 months late on their car payments
- 40% of people in America have less than $400 saved for emergencies
What You Can Do to Help
You know that I’m not doomsayer. But I do believe in handling things based on the present facts as opposed to preconceived notions.
That means it’s more important now than ever before to have a really strong understanding of how reverse mortgages work and how they may be able to help your clients.
I recently completed a new certification to earn the title of Certified Reverse Mortgage Specialist, so I’m more committed than ever before to educating my referral partners and clients about how reverse mortgages work.
If you’d like to schedule a time to get together and discuss how a reverse mortgage might help your clients combat this serious financial trend, please let me know!