Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Retirement Investing

More Seniors See Homes As Retirement Fund: Study

Your article was successfully shared with the contacts you provided.

An increasing number of seniors may be thinking about using use their homes to finance their retirement.

Only 25% of seniors ages 62 to 75 now say it is “very likely” or “somewhat likely” that they will pass their homes on to heirs, down from 42% in 2006, according to Financial Freedom, a subsidiary of IndyMac Bank F.S.B., Irvine, Cal., that sells reverse mortgages.

About 12% of survey participants said they already plan to sell their home to fund their retirement, and 38% said they would sell for that purpose if they had limited financial choices. Another 13% said they would use a reverse mortgage or other arrangement to use a portion of their home equity.

The researchers also asked about specific strategies for paying for retirement.

About 33% of the survey participants said they work part-time, and 4% said they would work full-time.

Roughly 14% said they would sell their home and move into a smaller one; 9% said they would sell their belongings; and 6% said they would take out a reverse mortgage.

Although many seniors said they wanted to avoid retiring in debt, 27% expect to have debt in retirement and 40% expect to have mortgage debt.

Researchers found that 59% of the seniors surveyed have more than $15,000 in non-mortgage debt, and 12% have more than $100,000 in non-mortgage debt.

About 17% of the seniors who have non-mortgage debt never expect to pay off the debt, the Financial Freedom researchers report.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.