There are only 21% of workers who are very confident that they will have enough money to live comfortably during retirement and over half of Americans have been labeled “at risk” of not being able to keep up with their lifestyle expenses in retirement, according to EBRI, cited in a recent article from Forbes.
But, there are options to secure retirement, including paying off a mortgage early, moving in with other family, downsizing, or even using a reverse mortgage, according to the article contributed by Scott Spann, a certified financial planner at Financial Finesse, a financial education company.
“A home equity conversion mortgage, or reverse mortgage, is a type of mortgage that allows homeowners to borrow against the equity in their primary residence,” Spann writes. “They differ from a forward mortgage in that no monthly payments are required. For this reason, reverse mortgages provide a potential way to buy a lower cost home or one that is more suitable to your retirement lifestyle with no monthly payments.”
Though the article does not mention that with a reverse mortgage, borrowers must keep up on other household expenses such as taxes and general upkeep, it does provide a link to learn more about a reverse mortgage for purchase.
The solution of relocating to a foreign country in retirement, or purchasing an RV to travel the country or boat to live in, are other ways the article shares how retirees who are strapped for cash may be able to save money in retirement.
Read the full article from Forbes.
Written by Alana Stramowski