It’s one of life’s biggest questions: How much money do you need to save to enjoy a comfortable retirement life?
The truth is, the answer depends on the retiree’s goals and lifestyle, but there’s always a starting point.
A new survey sheds light on this all-too-important question.
Nearly half of survey participants said they would need to save less than $250,000, while the remaining group said it should be between that amount and $1 million.
The survey also reveals different attitudes among various generations. For instance, millennials said they need to save three-quarters of a million dollars. It was the biggest number seen among the group. They’re off to a good start too. This age group, on average, has saved nearly $80,000 for retirement.
Baby boomers have the second most money saved at nearly a quarter of a million dollars while the silent generation has the most saved, but only slightly more than baby boomers.
Despite these large numbers approaching the $1 million mark, experts say it’s not enough. With life expectancy at 78 years old and retirement age at 63, the numbers look much smaller when broken down yearly. If someone has about $580,000 saved, then they’ll need to budget for under $40,000 a year if they retired at 63. That figure is about half of the average median household income.
It may not be enough to satisfy your vision for retirement life.
As a homeowner, you can gain financial flexibility through a home equity conversion mortgage. If you are over the age of 62, you qualify to transform one of your most powerful financial assets into a resource for the future.
Finding financial flexibility as you near retirement age is indeed possible through this financial tool. It lets retirees convert a part of their home’s value into cash. And, a conversion mortgage eliminates monthly mortgage payments. No other investment lets you make big gains without having to move or sell. Furthermore, you will remain as the owner and you are free to leave any remaining equity to your heirs.
Please contact us to learn more about this exciting opportunity. It can be difficult to navigate today’s financial realities and organize life as a retiree. A home equity conversion mortgage, however, will let you focus on what matters the most without worrying about financial limits.
*(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.