About 10,000 Baby Boomers are turning 65 each day.1 Baby Boomers are the generation of people born between 1946 and 1964, which represent nearly 20% of the American public.1 While many seniors are retiring at this time, many also continue to work. For some, they choose to work beyond retirement age in order to preserve their savings, stay physically and mentally active, or even to increase their Social Security benefits.2
Whether you are planning on retiring soon or have already started retirement, take a moment to think about how you envision your retirement lifestyle. Even if you have planned, saved and invested carefully, you may have fewer funds than you had expected to meet your goals. Now is the time to consider all of your financial options and make the right decisions for your future.
| Options | Pros | Cons |
| Delay retirement or return to work | You can continue earning income to pay for your financial obligations. You increase your future Social Security benefit.2 | You may be unable or unwilling to continue working because of poor health, loss of job, or other reasons. |
| Sell your house and downsize | You eliminate or reduce your current mortgage payment and maintenance. | You may want to stay in your current home. You may still have a mortgage. Closing costs add to your financial burden. |
| Obtain a home equity loan or refinance your existing mortgage | You remain in your home. You may be able to lower your monthly mortgage payments and even pay off other debts. | You must still pay your monthly mortgage, plus closing costs for the equity loan. |
| Decrease expenses and modify your lifestyle | You eliminate unnecessary expenses and reduce your monthly cash outflow. | It may be difficult to cut back if you are already living frugally, or you may not want to sacrifice some comforts. |
| Obtain a Home Equity Conversion Mortgagee (HECM) | You remain in your home. You eliminate your monthly mortgage payment and may have additional funds for expenses or financial goals.3 | The loan balance grows over time and the value of our estate may decrease over time. Closing costs are also added to the loan. |
Choosing the right retirement plan depends on your financial goals. There are many resources and options to consider. If you’re a senior homeowner planning for retirement, consider a reverse mortgage. Try our reverse mortgage calculator above or call 1 (800) 976-6211 to speak with a licensed loan advisor.
Important Disclosures
1Forbes. Social Security Feels Pinch As Baby Boomers Clock Out For Good. https://www.forbes.com/sites/greatspeculations/2018/06/21/social-security-feels-pinch-as-baby-boomers-clock-out-for-good/#783cc4d24995
2Social Security Administration. Retirement Benefits Guide, Delayed Retirement, pg 5. https://www.ssa.gov/pubs/EN-05-10035.pdf
3You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration (FHA) requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.