Will You Have Enough Money to Last Your Whole Retirement?

According to the National Center for Health Statistics, women at age 65 can expect to live another 19.2 years, compared to 16.3 years for men.  Since 1900 the percentage of senior citizens in the American population has tripled and their numbers have increased eleven-fold.  The population age 85 and older increased from 3 million to 4.2 million between 1900 and 2000.  The U.S. Bureau of the Census predicts that by 2030 there will be about 70 million people age 65 and older.  It is estimated that by 2050 there will be 19.3 million people age 85 and older.  Included in this estimate will be 1 million senior citizens age 100 and older.

With life expectancies increasing there is a considerable risk that the average senior citizen retiree may be faced with the problem of outliving their retirement income.  As the senior citizen population ages and their retirement incomes remain fixed and costs rise, a resulting loss of purchasing power can occur.  Out-of-pocket spending for health care in 1999 totaled 19 percent of their total retirement income.  With some senior citizen pension plans drying up and assets of senior citizens diminishing, senior citizen retirement incomes could see a national trend to fall.  In 2001, 3.4 million senior citizens had retirement incomes below the poverty level.  As a result, more and more senior citizens are going back into the work force to make ends meet.  Senior citizens will need more options.

Thanks to tremendous influence by the senior citizen organization AARP and a special act from Congress, the federal government through HUD/FHA now has a guaranteed and insured Home Equity Conversion Mortgage program whereby senior citizen homeowners age 62 and older can take the trapped equity from their home and receive cash in a variety of ways.  Senior citizens can take a lump sum, receive monthly payments, or place the funds in a growing line of credit that grows tax free.  The credit line can be drawn against using a check book.  The senior citizen homeowner retains ownership of their home and no debt can ever be passed to the heirs.  There are no retirement income or credit qualifications and most importantly, there is never a monthly house payment while the senior citizen occupies the home.  The reverse mortgage can be a valuable financial planning tool to help offset the consequences of aging, thus giving senior citizen homeowners more options during their golden years.  Why not let your home pay you for a lifetime of hard work.

For a free booklet about reverse mortgages or employment for senior citizens in the reverse mortgage industry, contact todd@victorygraphicsandmedia.com