Last year, the world was turned upside down.
As a result of the pandemic, many individuals took a hit to their savings and retirement and were left with more questions than answers about their financial future.
Today, as things get back on track, millennials appear to be not too hot or too cold when it comes to their financial preparation.
According to a new report, individuals between the ages of 25 and 40 have saved an average of about $51,000 with retirement balances of about $63,000.
The next older group, Gen Xers, has more savings and retirement money, averaging about $67,000 in savings and nearly $100,000 in retirement funds.
In contrast, baby boomers are far ahead with low-to-mid six-figure amounts saved in both savings and retirement accounts.
The youngest group, Gen Z, has saved about $36,000 in both types of savings accounts.
Over a one-year span, savings are up across the board. American savings’ accounts are up by 10% this year following a dismal 2020.
Despite the positive growth, many people find themselves behind on their savings.
Fidelity, for instance, recommends people aim for savings that equal their salary if they are 30 years or younger. If they’re 40, they should save roughly four times their salary. By 60 years old, workers should have saved eight times their salary to live a comfortable retirement.
As the nation continues to recover, about 50% of Americans say they too are in recovery mode when it comes to managing their finances. There are challenges ahead, but a majority of Americans also feel that they will fully recover and reach pre-pandemic levels of savings.
Depending on where you are on your road to retirement life, you might be optimistic about reaching your potential too.
Homeowners can elevate their retirement planning by turning their asset into an immediate financial boost.
As you begin the next phase, there’s no need to compromise, especially if you have grand plans for an enriching and happy retirement life.
You might be able to gain new financial flexibility through a home equity conversion mortgage.
If you’re at least 62, you can qualify for this mortgage program and take steps forward in retirement planning without having to move or sell. You can use equity in your home, eliminate monthly mortgage payments and move ahead from a new starting point.
Contact us to learn more about how a home equity conversion loan can change the trajectory of your financial planning and retirement living.
*(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.