Less retirement funds means looking at alternative options

According to an Ameriprise Financial survey, aging baby boomers are losing on average $117,000 in retirement savings following the economic recession. The survey looked at 50-70 year-olds with at least $100,000 saved up in retirement funds, and found that a great number of those who were surveyed suffered a financial loss due to an unexpected  event.

The survey deemed these “unexpected” events as “derailers,” and found that low interest rates were among the highest reported derailers for baby boomers and their retirement savings. Other derailers include supporting grown children and grandchildren, job loss, bad investment and market declines.

Despite the unexpected loss in savings, only 35% of those surveyed viewed these setbacks as affecting their retirement “a lot.”

Even with an optimistic view of their retirement savings, baby boomers and senior citizens should be prepared for any unexpected bumps in the road during their retirement years. This can include medical emergencies, supporting their children and grandchildren due to their unexpected financial hits, or any number of things.

The option to get a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage, can help take the burden off many senior citizens, when they are already on the retirement track. If you  are at least 62 years old, and you are struggling with finances, or have encountered unexpected financial events (such as medical expenses, home maintenance, helping your children, etc), you can use this loan to help increase your current retirement fund using the equity of your primary residence.

Many seniors and aging baby boomers expect to retain their independence during their golden years, and if they find that there is no other option than staying at home and preserving their financial independence, they can turn to the reverse mortgage program. Using the reverse mortgage loan can help senior citizens continue to preserve their quality of life and can assist with any of the financial “derailers” that can dig into their current retirement fund.

For retirees to qualify for this FHA-insured loan, they must be at least 62 years of age, property is their  primary residence and property must meet minimum HUD guidelines.

For more questions about reverse mortgages, you can speak with an advisor at 1-888-808-8486.

You can also use this Reverse Mortgage Calculator to help determine your eligibility.

Read Related Posts:

How to Retire with Ease

Retirement Planning Tips

About the Author:

I have been working in the reverse mortgage industry for 20-plus years. My goal is to provide consumers the most up-to-date and relevant information about the reverse mortgage industry and how it can affect them.

Thanks for reading!

-Alan F.

 

Image courtesy of [cooldesign] / FreeDigitalPhotos.net