“It was the best of times, it was the worst of times…” Charles Dickens: A Tale of Two Cities
Right now is an interesting time to be in the service of our nation’s senior citizens.
Seniors have more liquidity than ever. But they also face higher pressure and greater threats on the financial front. That’s why it’s more important than ever to stay up to date on important information such as the 2 studies below which show starkly different information!
Study #1 – Senior Housing Wealth Reaches Record High of $7.19 Trillion
Homeowners 62 & older saw their collective wealth increase to an all time high level in Q3 of 2019.
The study, conducted by the National Reverse Mortgage Lenders Association (NRMLA) in conjunction with data analytics firm RiskSpan, estimates these seniors have over $7 trillion in wealth driven largely by increases in the value of their homes.
The study indicates this is the first time ever that senior wealth has topped the $7 trillion mark.
Study #2 – Corporate Pensions Are Going Extinct
The good news is seniors are accumulating wealth in their homes.
The bad news is they’re going to need it, because there’s an increasing chance their pension funds may not be there until the end.
A recent report by the consulting firm Mercer found that the average American corporate pension fund had just 85% of the funds that would be required in order to meet its obligations over time.
The report summarized that US pension plans are near their worst financial state in years, meaning there is real doubt about their ability to meet financial obligations to past employees.
The US Labor Department also reports that the number of pension plans offering guaranteed payouts has also diminished drastically, declining by an estimated 73% between 1986 and 2016, so the problem will only continue to get worse.
Why This Matters for Seniors
The starkly contrasting reports both point to the importance of home equity for seniors.
Regardless of what happens with pensions, seniors face real challenges when it comes to rising costs for health care, insurance, prescription medicine & in-home care.
Also, as we’ve documented before, seniors face increasing demands from family members looking for financial or housing assistance.
Our goal is to make sure seniors and their advisors have all the information needed to protect their most valuable asset – home equity. This is why it’s more important than ever to use reverse mortgages responsibly, in a way that gives seniors the support & peace of mind they deserve.
Please contact us today with any questions about how reverse mortgages work.