HUD Says Reverse Mortgages Are a Good Option

The Secretary of the Department of Housing and Urban Development (HUD), Julian Castro, recently stated that the Home Equity Conversion Mortgage (HECM) can provide a boost in retirement for aging Americans in certain situations.  According to Castro, "While the loan doesn't fit for everyone, it can be a good option for those in the right circumstances trying to make it through retirement."  Zillow's Chief Economist, Stan Humphries, also added that a reverse mortgage can help older Americans age in place.  This was all part to an audience question during a fireside chat on January 21, 2015.  Read more here.

Reverse Mortgages Are Aimed To Boom

The FHA reverse mortgage program has been recently strengthened more than ever to attract Baby Boomers looking for additional sources of income to fund their retirements.  Recent government regulations have been modified to further protect senior borrowers from issues such as leaving a spouse unprotected and ensuring borrowers have sufficient assets to pay for property taxes and homeowner's insurance.  According to CBSNEWS, "The reverse mortgage is going to be a lifeline for millions of retirees in the years to come."  Read the entire article here.

Health Care Costs For Retired Couple

Fidelity Benefits Consulting published a recent article stating that, based on their estimate, a 65 year-old couple retiring this year will need an average of $220,000 to cover medical expenses throughout retirement. That figure is down from their 2010 figure which was $250,000.  As stated, health care continues to be one of America's largest expenses in retirement.  Fidelity suggests to consider opening a health savings account (HSAs) which allow individuals to pay for qualified medical expenses on a federal tax-free basis.  Read the entire article here.

Workers Not Very Confident About Retirement

In a recent interview of workers conducted by the Employee Benefit Research Institute, 37% say they are "somewhat confident" and 18% say they are "very confident".  In addition, of those interviewed, 36% said that they have less than $1,000 in savings.  As far as the ability to afford long-term care, more than 3 in 10 are "not at all" confident in their ability to afford long-term care expenses in retirement.