Don’t be fooled. Older American’s are struggling with money.
A recent study published by Property Shark revealed some startling insights into the health of senior finances.
It also offered some concrete advice on how we, their advisors & in some cases children, can help.
Senior Retirement Stats Headed in the WRONG Direction
According to the study, nearly ⅓ of ALL adults over age 45 are struggling with money.
As you’d expect, the lower income brackets have it harder. That’s why it’s especially hard on our seniors.
While seniors usually have retirement or pensions, very few of them have $60, $80 or even $100k in active income per year.
Image Credit: Property Shark
The stress starts even before retirement. The study finds that 23% of people looking to retire within 5 years are struggling with money.
Stop & think about that for a moment. Nearly ¼ of people about to retire are worried about money!
Thinking about retiring in 10 years? That number is even worse with 44% of respondents saying they don’t plan on EVER fully retiring!
Image Credit: Property Shark
Here’s what else you need to know – nearly 45% of respondents near retirement age want to stay in their homes for their senior years.
Can you think of ANY way to help them do that?
Seniors Are Unaware of Their Options
Sadly, the study showed that less than 50% of respondents were aware of government programs such as reverse mortgages which are specifically designed for seniors.
Instead of looking into existing programs, seniors are often thinking about bootstrapping their finances by monetizing their homes. In other words, they’re thinking of taking on a roommate, boarder or renter to help offset housing costs.
How a Reverse Mortgage Can Help
Perhaps the biggest thing our seniors have going for them is the equity in their homes.
The study reported that around 60% of seniors in the study are living mortgage-free.
For many seniors, this may be a huge opportunity for financial relief.
Reverse mortgages allow seniors to access the equity in their homes without having to make mortgage payments. The funds are tax-free and can be used for virtually anything.
If you’d like to learn more about how your clients that are seniors or nearing retirement age may benefit from a reverse mortgage, please contact one of your Reverse Mortgage Specialists today!