A recent study found that many Baby Boomers are expecting to retire later than they expected.
The study, conducted by Express Employment Professionals, polled 1,500 U.S. workers between the ages of 54 and 72, found part of the reason for this was because of “economic circumstances.” The other reason stated was by choice as a result of a labor shortage.
The study also found that only 27 percent of those polled said they were “very prepared” for retirement.
Such studies support the idea that we now have a new retirement paradigm. With people living longer, too many retirees are now on Social Security. People are not properly planning for retirement – many do not have enough money in their IRA or 401k, and the average Social Security income isn’t adequate. As a result, too many people in retirement risk running out of money.
This is where a Home Equity Conversion Mortgage (HECM)* loan comes into play. These loans allow homeowners to borrow against the value of their homes. Repaying the mortgage (principal or interest) isn’t required until the person dies or the house is sold. Repayment may need to happen sooner if the borrower no longer uses the house as their principal residence, or fails to pay insurance, taxes or make needed repairs.
The study also found that 78 percent of those polled said traveling was their ideal activity in retirement. Here are five places you could consider traveling when you retire.
Find more information about HECM and additional options here: https://curtismangus.com/types-of-loans/
*(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 re-payment.