The Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) recently conducted a survey that showed almost 85% of respondents had the same overall concern in retirement planning; securing a guaranteed income stream. The most popular and easily accessible income stream in retirement is an annuity but, 65% of those surveyed are not familiar with annuity products. Last year 21% said they were not saving anything for retirement and this year that number went up to 29%. This survey clearly shows that Americans understand what they need to get out of their retirement planning, but they lack the knowledge of how to achieve it. Annuities can be a safe and secure financial product that will give retirees the guaranteed income stream they need. Many will have some money to fund an annuity, but in most cases it will not be enough to provide the guaranteed monthly income one needs to fully cover retirement.
For most people it makes sense to increase the funding side of their retirement, but it would be wise to also look at lowering the expense side of their retirement at the same time. If one can eliminate a $1,500 mortgage payment with a reverse mortgage, that frees up $1,500 more of their monthly income making the annuity that much more powerful in funding their retirement. In many cases a reverse mortgage will also provide an additional guaranteed monthly income, lump sum payout, or Line of Credit that can be used as needed, with no required payback during the lifetime of the homeowners. To see how much a reverse mortgage would provide for you click HERE.
With more Americans heading towards retirement under-prepared, it is no wonder that Forbes recently noted that tapping into one’s home equity may be the best way to fund retirement. HUD has continued to expand it’s HECM reverse mortgage product that safely allows homeowners 62 and older to tap into their home equity while not having any risk associated with having to make a monthly mortgage payment.