The National Institute on Retirement Security expresses concern that many seniors who face retirement in the near future do not have enough savings to afford retirement. “Financial experts suggest that people need 8-11 times income in retirement assets in order to maintain their standard of living in retirement.”
In a study from June, 2013, The National Institute on Retirement Security provided surprising figures regarding working age households with at least one earner. “Overall, over 40 percent have no retirement savings. Another 40 percent have retirement savings less than 100 percent of income. Among working households age 55-64, nearly 32 percent have no retirement savings, and another 32 percent have retirement savings less than 100 percent of their income. That is, 80 percent of all working households age 25-64 and 60 percent of working households approaching retirement have less than their annual income saved in retirement accounts. This reflects a huge shortfall compared to the amount they will need…” Based on these figures, those working today should not only be focusing on affording their current lifestyle and bills, but also on saving for their future.
Additionally, people are living longer. CNBC reports that “people are also living much longer than their parents: A male reaching retirement age in 2013 is expected to live to an average of 85, a woman to 87…A retirement crisis is looming. In a little more than a decade, there will be a lot of older people who will run out of money.”
If you or someone you love is looking to supplement your retirement income, a reverse mortgage loan could be a viable option to help gain a stronger financial footing. A reverse mortgage is a loan that allows you to access a portion of the equity in your home. There are some requirements to be eligible for a reverse mortgage loan. Borrowers must be 62 years old or older, have sufficient equity in their home, not be delinquent on any federal debt, and live in the home as their primary residence.
Eligible homes must be a single family home, a two-four unit home where the owner occupies one unit, or an approved condominium or manufactured home.
Borrowers must also participate in a reverse mortgage counseling session with a qualified HUD reverse mortgage counselor. Click on the link for a list of HUD counselors. During the counseling session, counselors will discuss the loan process, borrower expectations and answer any questions the borrowers may have.
Reverse mortgage loan proceeds can be received in a variety of ways. Borrowers may choose from monthly payments, a lump sum, a line of credit or a combination of these options.
For more information on a reverse mortgage loan, please call (800) 976-6211