Baby Boomers, born between 1946 to 1964, are facing an underfunding issue for their retirement due to increased life expectancy. The Social Security system is struggling to cope with the financial needs of the aging population. The challenge is that, as people live longer, they will likely require more financial support during their retirement years, which could further strain the Social Security system. Let us take a more in-depth look at the current situation of Baby Boomers and how the Social Security challenge will affect them.
According to the Social Security Administration, more than 60 million people receive Social Security benefits, and about two-thirds rely on them for more than half of their income. Moreover, it is estimated that the Social Security Trust Funds' reserves will be depleted by 2035, which could result in benefit cuts of up to 25% if there are no policy changes.
To further complicate things, Baby Boomers have significant debt and may not have sufficiently saved for retirement. In fact, research from the National Institute on Retirement Security found that the median retirement account balance for those between the ages of 55 and 64 is only $15,000!
Fortunately, most retirees consider their homes as their most valuable asset. In response, Boomers are now utilizing their home equity through reverse mortgages to bridge the gap in their retirement funds. A reverse mortgage enables seniors to access some of their home equity without selling their homes.
A reverse mortgage can provide homeowners above the age of 62 with reliable financial cushioning to achieve a comfortable retirement lifestyle. By implementing a comprehensive retirement plan, including reverse mortgages, Boomers can budget their remaining retirement funds, save on taxes by reducing retirement income, and manage an inheritance.
To opt for a reverse mortgage, homeowners need to speak with a certified reverse mortgage lender or broker. They will guide them through the process and educate them thoroughly about the reverse mortgage guidelines, interest rates, closing costs, and tax implications.
In conclusion, Baby Boomers face retirement underfunding issues due to increased life expectancy, and the Social Security system struggles to meet their financial needs. Boomers can bridge the gap through the utilization of home equity. By formulating a comprehensive retirement plan, including a reverse mortgage, Boomers can manage their retirement funds to enjoy a comfortable retirement without stress.
Don't let retirement underfunding stress you out! Schedule a consultation with Angella Conrard, the Certified Reverse Mortgage Professional, today at 949-439-7030 to learn how to take advantage of a reverse mortgage and secure your retirement lifestyle.
