I know that this isn’t any news when you consider in light of the financial markets crashing in the last few years, but the Boomer generation will not have enough money to retire. They may not even have any money to fall back on as they age. The following article discusses the latest figures on this and mulls about the solution.
I feel that the Reverse loan will become a more and more attractive consideration for the Boomer generation. They are and will be less fearful of it and will consider it to be a logical solution to lack of cash flow as they age and will allow them to remain in their homes and independent.
Baby Boomers: 25% Have No Retirement Savings
February 16th, 2011 | by eecker Published in News, Retirement, Reverse Mortgage
“Retirement savings numbers are falling across age groups, says a November Harris Interactive poll.
The November survey, which included 2,151 adults from around the U.S. found 34% of Americans have no retirement savings and 27% have no personal savings.
For baby boomers, many of whom are quickly nearing retirement age, 25% of those surveyed have no savings for retirement. Of those who are 65 and older, the proportion was 22%.
In terms of portfolio mix, 70% of adults said they have not changed their portfolio mix in the last six months.
Eighteen percent report keeping their retirement investments mostly in stocks and mutual funds and 22% say they keep retirement funds in an equal mix of stocks/mutual funds and investments such as bonds and money market funds.
‘Current economic conditions seem to be driving somewhat less risky investment behavior by Gen Xers, which goes against the grain of traditional investment advice,’ said Harris Vice President of Financial Services Research, Barbara Bertner, of the findings. Those who are closer to retirement age, however, and do not have any savings, may need to seek alternative sources of income or delay retirement.”
Written by Elizabeth Ecker