Future Retirees are Still Skeptical when it Comes to HECMs
The current workforce contains a large number of employees who will be looking forward to retirement soon. However, it does not look like the Home Equity Conversion Mortgage product appeals to them just.
“Research suggests that while some of today’s retirees are financially fragile, most appear able to absorb shocks without incurring hardship,” said Steven Sass of BC’s Center for Retirement Research, according to Reverse Mortgage Daily.
“Working longer, annuitizing wealth, and taking out a reverse mortgage would increase retirement income. Downsizing is the most effective way to reduce fixed expenses and could also increase the household’s financial assets. While many individuals are already working somewhat longer, retirees rarely annuitize, downsize, or take out a reverse mortgage.”
The unfortunate reality is that many soon-to-be retirees aren't focusing on reverse mortgage products as a way to help increase their retirement income, or simply do not have the proper education on how reverse mortgages work.
This could prove to be a target market for companies, however, the pitches will have to be very informative and prove why reverse mortgages are such a viable option.
To learn more about the state of soon-to-be retirees and how reverse mortgages can help them, click on the image above.