When Should You Retire?

Retiring at one time, was something  most people  planned on doing if they had been contributing to a retirement plan.  And especially if they had been fortunate enough to work for one employer for many years that provided a retirement program to their employees.

However in the last several years, that possibility has changed because of the economic crash we recently experienced and because many people have lost their jobs, retirement may  have to be delayed.

I found the following article to be interesting and you may too.

Reverse Mortgages Delay Retirement Shortfall, New Study Shows
Posted By Elizabeth Ecker On April 10, 2012 @ 5:20 pm In News,Retirement,Reverse Mortgage | No Comments
“Financial advisors will be of greater help to their clients if they focus on a broad array of tools, including taking out a reverse mortgage, a Boston College study[1] released in April finds.
The study, conducted by the Center for Retirement Research at Boston College, analyzed the point at which a person of retirement age falls short of his or her retirement “target” when several different tools are used: delaying retirement, taking out a reverse mortgage and controlling spending.
The study assumes reverse mortgage retirement income is used either by a homeowner without a mortgage who takes the maximum loan amount and receives lifetime payments over the course of the loan or by a homeowner who has a mortgage, in which case the loan is used to pay off the existing mortgage or is received as a lump sum.
Under a base case scenario, 74% of households fall short of their retirement target at age 62. The study finds that with a reverse mortgage, that age increases to 67. When compared with other potential solutions however, including controlling spending and investing 100% in “riskless equities,” the reverse mortgage delays that age more than the other mechanisms for each age group.”

 

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