Retirement Doesn’t Have to be Stressful
June is Care for Your Grandparents Month. While it may seem like just another silly “holiday,” the National Council on Aging’s recent survey shows that a lack of social support from younger generations is among the biggest fears Americans have about growing older. Other major fears include being unable to stay in their current home, outliving their savings, and facing unexpected medical expenses. This month, consider setting aside some time to talk with an older parent, relative, or friend about their concerns, and help them make plans for a more secure retirement.
Staying in their current home
Seventy-five percent of seniors plan to stay in their current home for the rest of their lives. However, as people age, their housing needs change. Aging-friendly renovations including widening doorways, installing wheelchair lifts, and eliminating step-over showers may be necessary for a safe, accessible home as mobility decreases.
Outliving their savings
Many seniors worry about balancing their departure from work with their continuing expenses. As a result, they are focusing on cutting day-to-day costs and limiting luxuries like travel. However, with their money often tied up in assets like real estate and investments, they don’t always have quick access to cash to pay for necessities they need to maintain healthy, active lifestyles through retirement.
Unexpected medical expenses
The costs of healthcare in retirement are increasing rapidly each year, a reality that many Baby Boomers were not equipped to face. Retirees, many of whom are living on a fixed income, may not have the reserves available to cover a sudden, unexpectedly expensive illness or injury. Uncertainty about the future of Medicare and Social Security programs can make these emergencies feel insurmountable.
A potential solution
If you or a loved one share these concerns, a Home Equity Conversion Mortgage (HECM), or reverse mortgage for retirement, may be able to offer some relief. By accessing your home equity now, you could build a “rainy day fund” for healthcare costs, invest in renovations, and secure the longevity of your savings.
Open Mortgage can help you assess your eligibility for an HECM and determine your options. Contact us today for more information.