It is unfortunately not surprising, but more than half of Americans have less than $10,000 in savings. Most coming to retirement age these days do not even have the resources to cover the living expenses and health care costs if they were to leave their jobs. Is retirement only for the rich?
The numbers have been tabulated, and right now there is a gap between pensions and retirement savings for those in these golden years that is more than 6.5 trillion dollars! (This is according to the Center for Retirement Research at Boston College.) Many will be unable to maintain their current standard of living during retirement, let alone live the retirement they once dreamed of.
Millions of seniors live in poverty and the percentage is growing, expected to increase more than 30% by 2020. This trend is a concern not only for the ones retiring but for their families as well. And the overall effect upon society means we are in crisis to provide for our own after they have given their lives working in our country.
Reverse mortgage can be an effective means for seniors 62 and older to rise to their personal need and create a stream of resource that will allow them to comfortably stay in their home – or provide for specific needs, such as medical care. The concept of a reverse mortgage is to use the equity of the home and turn it into liquid cash in the form of monthly payments, a line of credit, a lump sum, and even to purchase a new home. The assistance is well deserved since the equity of the home rightly belongs to the borrower, but unlike a Home Equity Loan, with a reverse mortgage there are no monthly loan payments. And the homeowner retains the title to the home. Once only considered a lifeline for destitute seniors, reverse mortgage is proving to be an excellent tool when used as part of a retirement planning strategy and is making a world of difference for retirees.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming. Contact Jan and learn if reverse mortgage is right for you.