Retirement income strategies vary: Some favor taking out reverse mortgages, while others prefer using investments or savings plans. Still, research shows that the main source of retirement income for the 65-plus population is Social Security payments.
But by 2030 — the year all baby boomers will have passed age 65 — seniors may be forced to look elsewhere for retirement funding, as some suggest the Social Security trust fund will be nearly depleted.
Aside from Social Security, other primary sources of retirement funding include income from working, pensions, and savings and investments.
The average income for those between the ages of 65 and 69 is $37,200, but it drops to a little less than $20,000 for those over age 80, according to Census Bureau data compiled by U.S. News & World Report.
Use of these strategies varies by age. Many younger retirees seek income from working and investments, while older retirees rely more heavily on Social Security.
But with a greater need for retirement plan alternatives on the horizon, the reverse mortgage industry may find opportunity to tap into the growing aging population.
And recently, industry critics have praised the use of reverse mortgages as a tool for seniors to manage retirement income and spending.
View the Census Bureau report.
Read the U.S. News article.
Written by Emily Study