The Biggest Retirement Concern…
The finance problem continues to be…well, a problem. Older Americans are looking at their finances and starting to worry more about their income during retirement than the deterioration of their health.
It’s shocking to say the least, especially because health problems can often lead to financial problems, because of high health-care and prescription medicine costs, but a recent United States of Aging survey says otherwise, according to an article published in Reverse Mortgage Daily.
In fact, 53% of the participants are concerned about whether or not their savings and income will be sufficient to last them the rest of their lives, reports the article, while 33% remained unconcerned about their future finances.
The point being, future and current retirees are seeing the future of their retirement and it looks bleak, especially considering 43% of the participants relied on Social Security as their primary source of retirement income. More troubling is the fact that 41% planned to rely on Social Security during retirement.
In the current financial climate, it seems older Americans have not saved enough, allowing the retirement savings gap to reach $14 trillion, putting at risk their financial stability during retirement. In the end, 19% said t was difficult to afford monthly living expenses while 18% reported a reduction in their regular spending.
On top of all this, 23% predict that their health will continue to worsen in the next 5-10 years while 13% thought their health would improve. However, 18% reported having five or more chronic health conditions and 65% reported suffering from two or more. In the face of these statistics, it’s surprising that 51% haven’t set any specific goals to manage health this past year and 43% have taken no steps in order to prevent falls.
It’s like everyone is holding their breath and waiting for what is going to happen in the future.
Planning for retirement is essential for enjoying retirement. The plans you make now, and how you plan to achieve those plans, are crucial in determining whether or not your retirement will run as smoothly as you want it to.
A reverse mortgage can serve as a planning tool for retirees looking to reinforce their retirement income. A line of credit option, for example, can serve as a safeguard, if and when, it is necessary, not before. The borrower has complete control over the how much and when the funds are used. Not to mention, it is a source of income that can never be frozen as long as there are funds in the account.
Sudden financial hardships are difficult to overcome so planning how you will receive your income during retirement is essential for a relaxing, worry free retirement.
It’s crucial not to wait though, as there are changes coming to the reverse mortgage program, soon. If you think a reverse mortgage is right for you or simply want more information, give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire. We are simply here to help.