There is growing concern about how to meet the needs of an aging population in the United States in the coming years. Recently a task force was created to address the serious concerns and potential costs to the economy and what methods could possibly be used to minimize the impact in the future.
Reverse loans are part of the discussion and consideration to offset the costs to aging in place. As it stated in the following article, it is not necessarily a solution for everyone, but it is an excellent tool to have has an option.
Seniors currently hold over 3.3 trillion dollars in retained and equity and this money is non-taxable and certainly could be used for long-term-care and other medical expenses and reduce the burden to families and the government.
The article is quite long, so I will post it in three parts for easier reading.
Housing Task Force Sees Merits of Reverse Mortgages
Posted By Jason Oliva On March 30, 2015 @ 6:02 pm In News,Reverse Mortgage | No Comments
“A new bipartisan commission is launching a task force to take aim at critical aging issues over the next year. And for the most part, they are positive about how reverse mortgages factor into the aging in place puzzle.
Acknowledging that the U.S. faces a “real crisis” in meeting the housing and health care needs of its ballooning senior population in coming years, the Bipartisan Policy Center’s new Health and Housing Task Force will embark on a one-year effort to devise policy recommendations focused on enhancing long-term services and supports for the nation’s elderly.
Demographics fuel the Task Force’s establishment, especially as 73 million Americans are projected to be age 65 and older by 2030; with nearly 9 million age 85 and older, the BPC noted in a press call Monday morning. Furthermore, of those reaching age 65, about 70% will require some form of long-term services and supports.
While various reports cite seniors’ unwavering desire to remain in their homes for as long as humanly possible, their homes are often ill-suited to permit them to do so. It is through this disconnect where reverse mortgages, which have historically touted their ability to facilitate these desire, claim their role in the broader aging in place picture.”
The following post will discuss how the use of a Reverse loan in some situations, will be a critical influence in some situations. Not necessarily “all”, but certainly a important component to retirement planning and extending the longevity of a portfolio.