It’s official: most people do not feel that confident about their retirement, and a new survey that was outlined in Yahoo Finance confirms this. Just 6 out of 10 people are prepared for retirement these days, according to the retirement survey results.
In a polled that was conducted by Nielsen, 60% of those surveyed had less than half the recommended amount of savings set aside for retirement. Experts say that today you need at least $376,000 saved up for retirement in order to secure your lifestyle during your golden years.
According to the survey’s findings, 66% of respondents said that they regretted not planning for retirement at an earlier period of their life, with 65% agreeing that they didn’t have the necessary funds set aside to tide them through retirement.
Experts have also said that 60% of people start saving for retirement too late in life, after the age of 45. By the time these people reach the age of retirement, they are usually lacking in the necessary funds because they just have not saved enough for long enough.
For homeowners, there may be a light at the end of the tunnel, however. If you have been paying into your home during this same period, chances are you have a small balance remaining and plenty of available equity.
There has been a lot of talk in the news lately about using a reverse mortgage for retirement – something that could be a feasible way to tap into wealth for persons who have not been able to save as much as they needed for their retirement.
A reverse mortgage differs from a conventional home loan. Requirements mandate that you are age 62 or older and that you have substantial equity in your home. Recently enacted updates to reverse mortgage laws also mandate that you are able to show that you can upkeep the home and pay the property taxes and insurance, too.
Unlike conventional loans, however, a reverse mortgage is not based upon your credit rating or current income – making it a viable option for cash-strapped retirees that are seeking to secure their quality of life.
Anyone who feels that their savings and investments won’t last them through retirement can always consider discussing a reverse mortgage with their financial advisor. It can be a solution for certain homeowners.