Rising Home Prices Could Help U.S. Households Struggling to Amass Sufficient Retirement Income
In the latest National Retirement Risk Index findings, 50% of homeowners will finish their careers with 10% less than what is necessary to afford a comfortable replacement income.
This percentage has dropped 2% between 2013 and 2016. That being said, there are another 50% who will actually be able to afford it at the current NRRI. Though, this number should still be taken seriously as it is much lower than it should be.
“The bottom line is that half of today’s households will not have enough retirement income to maintain their pre-retirement standard of living, even if they work to age 65 and annuitize all their financial assets, including the receipts from a reverse mortgage on their homes,” wrote the authors of a study conducted by the Center for Retirement Research at Boston College, as reported by Reverse Mortgage Daily.
“This analysis clearly confirms that many of today’s workers need to save more and/or work longer to achieve a secure retirement.”
In the mortgage world, rising home prices actually helped the situation. The report explains that the increase in prices gives upcoming retirees a more valuable asset to work with.
To learn more about this trend and the impact it can have on the future, click on the image above.
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