Recent data from a survey regarding retirement reveals an alarming statistic: One-third of respondents admitted to saving less than $5,000 for retirement. According to a new data release from life insurance provider, Northwestern Mutual, one-third of baby boomers has $25,000 or less in retirement cash available.
This is a grim outlook for America’s baby boomers as they enter retirement. The broader pool of the general population reports that 21% of Americans do not have any retirement savings. Furthermore, three quarters agreed that Social Security would unlikely exist in its current form when they eventually retire. Are you ready for another shocking fact? Only half of Americans admitted that they had not done anything at all to prepare for a future in the event they outlived their retirement savings!
What do these statistics ultimately reveal to us about retirement in the future for Americans? Northwestern Mutual’s Vice President of Planning, Rebekah Barsch, provided her conclusion for the results by stating, “As financial implications of retirement become increasingly complex, inertia is not an option. The good news is that it’s rarely too late to start.” Barsch agrees that planning for retirement is not a simple project; however, choosing not to do anything about retirement should not be the option that we as Americans decide to take.
Also, the survey revealed that most Americans had resigned themselves to the idea of working longer before retiring, a strategy that financial planners heavily preach. These results somewhat mirror the wider-ranging Retirement Confidence Survey (RCS) released earlier this month by the Employee Benefit Research Institute, which saw seniors’ perception of their ability to pay for basic expenses and health care costs tumble from 2017. Also, the report showed that half had not thought about medical costs in retirement — while 40% experienced higher-than-expected health care bills.
Although the data from this poll may seem daunting, it does not have to be! Fortunately, the Reverse Mortgage helps retirees supplement their income and gives home security. The program works by allowing a senior who owns their home to convert some of their home’s value into tax-free cash to use for whatever they wish! Also, the program does not affect Social Security benefits. It is merely a loan that you pay back in the future, but many Americans either do not know about the program, or they are misinformed about it.
If you are curious about how the program works, give us a call at 1-800-420-5515 to speak with a qualified Reverse Mortgage professional. We look forward to helping you.