Things are very rough for everyone these days and especially if you are a Senior. And to make things just a little bit more worrisome, the Boomers probably won’t have Medicare by 2017 and if they manage to make it to 2037 Social Security will be gone as well.
These projections are based upon the current recession and not very reassuring for those who are approaching their retirement. Well, maybe that’s a bit too optimistic, since everyone that had a retirement portifolo is looking at losses between 40 and 60 %, making it a bit difficult to even think about retiring.
In a report that was published by the NY Times, it was stated that contributing to this potential insolvency, is the obvious fact that so many people have lost their jobs and the unemployment rate is high. Meaning that the government is collecting less money in payroll taxes which help to fund both programs.
The good news is ( And yes there is some), is that Reverse mortgages will fill in the financial void. More people are turning to them to offset their financial losses and as a matter of fact Joseph J. Murin the President of GinnieMae, is encouraging Financial Planners to become educated about the benefits of the federal program and begin to discuss it with their clients.