Every year, millions of Baby Boomers begin retirement life.
In 2020, however, the number of retired Boomers increased more than it has in years, according to the Pew Research Center.
About 28.6 million Boomers exited the workforce in the third quarter of this year. That’s an increase of more than 3 million individuals when compared to those who retired at the same time one year ago.
The increase is alarming.
Job loss associated with the ongoing pandemic is likely a reason for the larger-than-usual retirement exodus.
The number of Boomers 65 or older who retired went up by 2% since February. Those under the age of 65 saw no change to the number of new retirees.
Education is also a factor. Those without an education beyond high school were more likely to enter early retirement than Boomers with a college education.
Like everyone else, Boomers have made adjustments during the pandemic. Some have been easy and others have been extremely challenging.
Some Boomers, unfortunately, may also face an under-planned or unexpected retirement.
Premature retirement means they’ll need to gather additional financial resources.
If you’re over the age of 62 and own a home, you have the option of securing a home equity conversion mortgage while adding financial flexibility.
With a home equity conversion mortgage, retirees can eliminate monthly mortgage payments and build out retirement funding.
Retirees can still exercise their option to sell the home or pass remaining equity on to heirs.
To learn more about how to secure additional financial flexibility and provide extra security for your retirement planning during this unprecedented time, contact us today to learn more about this opportunity.
*(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.