"In inflationary times like these, a reverse mortgage is one option seniors can utilize"
A growing number of seniors are weighed down by inflation, and some are worried they will outlive their savings, according to a new survey from the American Advisors Group (AAG).
In the survey, which included over 1,500 participants ages 60-75 across the US, AAG found that 89% of seniors think the country is experiencing a retirement savings crisis.
“The retirement savings crisis is a real thing. Our data highlights the severity of the crisis and the actions seniors are taking to make ends meet,” said AAG chief marketing officer Chris Moschner. “In inflationary times like these, a reverse mortgage is one option seniors can utilize to generate increased cash flow by unlocking their home equity and easing the pressures on everyday expenses.”
Other key data from the survey were:
- 43% of seniors rated the condition of their retirement savings as fair or poor
- 47% of seniors say they find it difficult to save for retirement
- 44% of seniors feel they have not saved enough to retire comfortably
- 57% of seniors say they are only somewhat optimistic or not optimistic at all that their level of savings will last through retirement
- Almost 40% of seniors are worried about making ends meet
- Nearly 60% of seniors are cutting back on non-essentials to save money
Of those respondents who answered they were cutting back on non-essentials to save money, 80% said they’ve reduced dining out, 71% have traveled less, and 62% have cut entertainment costs to minimize expenses.
AAG noted that while seniors look for ways to increase their cash flow, collective senior housing wealth has reached a record high of $11.6 trillion.
“Through a federally insured Home Equity Conversion Mortgage (HECM) loan, more commonly known as a reverse mortgage, seniors aged 62 and older can access their home equity, eliminate their monthly mortgage payments, and remain in their home long term,” AAG said in a statement. “Reverse mortgage loan borrowers must own and occupy their home as their primary residence, pay all taxes and insurance, maintain the home and comply with all loan terms.”
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