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Reverse Mortgage Blog

Aging in Place

June 23, 2016

Retirees' Aging in Place Desires

Don't Include Reverse Mortgages

They Do Not Understand!

published May 23rd, 2016 by Alana Stramowski

While the majority of Americans wish to age in place, an overwhelming number either don't understand or haven't considered using a reverse mortgage in retirement.

Of those who are nearing, or in retirement, 83% want to stay in their home as long as possible....

"We saw more uncertainty between the ages of 55 and 62," says Jamie Hopkins, professor of retirement income planning and co-director of The American College New York Life Center for Retirement Income Planning. "But once we started getting past 62 and you start moving into retirement, we saw that these individuals really don't expect or want to leave their homes."

About half of those who want to stay in their homes as they age said that they would consider using home equity during retirement, but only 25% revealed that they feel comfortable spending it as a source of income, according to the survey.

Even with the large number of retirees who want to stay in their home, surprisingly, the majority of retirees don't understand reverse mortgages, the survey found. Just 30% of those surveyed earned a passing grade on a quiz about basic reverse mortgage knowledge.

Even more shocking, 10% of the respondents

incorrectly answered all ten of the questions

on the quiz.....

"Hopefully that's the biggest takeaway from the survey," Hopkins says. "

Advisors and consumers need to start thinking about home equity, including reverse mortgages, as part of the retirement income planning process."

 

How best to overcome the ignorance?

Meet with a qualified retirement income planner and learn about the value and options amiable with HECM

Jay Kaplan profile picture
Jay Kaplan
This is the place to share. Share news, updates and opinions. The reverse is the most misunderstood item in the lending and financial home ownership arena; we need more exchange of ideas. This area is for questions and, I hope; answers. Please keep the dialogue going in the name of education, and that goes both ways. Please see that I have added two categories from The Educated Retirement show for Nostalgia and Wisdom
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This is the place to share. Share news, updates and opinions. The reverse is the most misunderstood item in the lending and financial home ownership arena; we need more exchange of ideas. This area ...
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