Americans work for most of their lives to achieve a comfortable retirement, but inflation and the latest economic trends have made that goal difficult for modern day seniors. American Advisors Group (AAG) shows that the cost of living and other financial pressures have left seniors concerned for their future. To learn more, AAG conducted the Modern Retirement Survey with over 1,500 participants ages 60-75.
“Many seniors in this country are discovering that their retirement plans aren't working out as they had hoped, and inflation is only making that reality worse,” said AAG Chief Marketing Officer Martin Lenoir. “With older Americans searching for ways to afford the cost of living and increase their cash flow, it's no surprise that so many are turning towards reverse mortgages. With housing prices at a historic high, seniors across the country are tapping into their home equity and using the funds to create a comfortable retirement.”
Inflation is the leading cause of concern, according to the AAG survey, with two-thirds of American seniors (66%) worried that economic inflation will have a negative impact on their retirement. Widowed or divorced senior women had an ever more negative outlook with 72% expressing concern.
More than half of American seniors (53%) say the cost of living is higher than they expected. Meanwhile, widowed or divorced women answered at the highest rate with 61% saying retirement is more expensive than they had planned for.
Not only is it more expensive, but many seniors have less financial stability than they planned to have. One in three seniors (36%) say they have less money than they thought they would have at this point in their lives. Widowed or divorced senior women answered at the highest rate with 44%.
For many seniors, their financial supply is quickly running out. Nearly a third of seniors (29%) believe they will outlive their money. Widowed or divorced senior women answered at the highest rate with 34%.
Many older Americans are in need of additional funds to securely retire. More than a third of retirees (37%) said they need to increase their cash flow to live comfortably. Widowed or divorced senior women answered at the highest rate with 50%.
Little do many of these seniors know that their housing wealth collectively reached a historic high at a record $9.57 trillion, according to the National Reverse Mortgage Lenders Association. Many of these seniors don’t know what their home is worth right now, nor how to tap into that wealth.
Through a federally insured home equity conversion mortgage loan, also known as reverse mortgage, seniors aged 62 and older can access their home equity, eliminate monthly mortgage payments, and remain in the home long term. Seniors are still required to pay taxes on their home and insurance, live in their home as a primary residence, and comply with all terms of the loan.
