Research that was complied by the Center for Retirement research at Boston College, has found that two out of three people in their 60’s( the Boomer generation) is carrying more debt now than they did in the 1990’s.
Few will be able to retire due to the loss of retirement funds in their portfolios when the Financial crisis occurred in the last 6 years. This does not bode well for most of them, as they will be forced to continue to work to make mortgage payments and meet their costs of living.
Of course a Reverse loan could at the least, eliminate any existing mortgage payments and help them preserve any retirements funds that they may have, by eliminating any or less withdrawals than they would ordinarily make when they would need additional funds for expenses.
Here is a partial copy of the article that discusses this. The reminder of it will be in my following post.
Level of Debt Among Retirees Continues to Surge
Posted By Elizabeth Ecker On August 25, 2013 @ 6:36 pm In Reverse Mortgage | No Comments
“Nearly two out of three people in their 60s have today are carrying debt, up from half of the same age group in 1998. The level of debt as a share of assets is also on the rise, at 18% versus 10% 15 years ago, according to research [1] cited by the Center for Retirement research at Boston College.
Regardless of income level, the trend holds true, Center for Retirement Research writes, based on Urban Institute data presented at a recent Retirement Research Consortium.
In large part, the shift is due to mortgage debt being held by retirees. Older Americans are paying off mortgages more slowly than in the past, and mortgage balances have increased, write the BC researchers, in a blog post this week. ”