It’s been a tumultuous year and half since the start of the pandemic. The upheaval has touched every corner of life. The economic impact of the pandemic is substantial.
But, what are the repercussions on retirement savings?
A new study is shedding some light on that important question. About a third of Americans now must plan for a later retirement. About 14 million individuals stopped saving for retirement as other pressing financial priorities moved to the forefront.
At large, the economy was seeing signs of tremendous progress, but fears of more infection and spread of the Delta variant have tempered progress. Last month, job growth fell short of expectations.
Unfortunately, there was additional bad news for recipients of Social Security and Medicare. Some benefits must be cut by 2034, sooner than expected, if Congress fails to fill in the financial gaps. Without action, the benefits will only be 80% of what had been promised to retirees and other eligible individuals.
The economy during the pandemic is shrinking opportunities for greater revenue and payroll taxes, which impact funding for these essential programs.
Like many, you’re probably thinking of new strategies to boost your savings for retirement. Younger adults, for instance, will focus on greater contributions to savings in 401(k)s and other pensions. Of course, the earlier they start, the greater the return.
For individuals closer to retirement age, there are other effective strategies to boost savings.
In a time when compromise seems inevitable, it’s important to know that you can still carry out your retirement plans and remain financially flexible.
As a homeowner, you can gain financial freedom through a home equity conversion mortgage.
If you are over the age of 62, you qualify to transform this asset into a resource for the now and for the future.
As a bonus, you can boost your retirement income without having to move or sell with a home equity conversion mortgage. The program will eliminate monthly mortgage payments so you can address all your financial priorities during this transition into retirement life and beyond.
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax deductible until the borrower makes partial or full repayment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.