If you are still working because you need to work to pay the bills, then a reverse mortgage could be the solution to either reduce the number of hours you work, or retire fully.
Make Retiring A Reality With Help from a Reverse Mortgage
In 2015, workers 55+ was double that of teenage workers.
By 2022, it is projected 31.9% of those ages 65 to 74 will still be working. That compares with 20.4% of the same age bracket in the workforce in 2002, and 26.8% who were in the workforce in 2012.
There are several things that need to be looked at as to whether a reverse mortgage is going to be the right solution or not. The first thing that needs to be considered is why you are still working.
Do you have a mortgage payment or other debt that are too high to allow you to live solely on other retirement income sources?
If that is your situation, then you may want to consider using the reverse mortgage to pay off your current mortgage and other debts. Freeing up those payments could increase your cash flow enough to retire.
Are you living a lifestyle that requires you to keep working?
First and foremost, you must decide if your lifestyle is worth continuing to work. Second, you need to think about what happens when you just can’t work anymore. I understand that some of you reading this live their life like a shooting star. But eventually shooting stars burn out or crash land. A reverse mortgage could help you continue living that lifestyle. But burning through your financial resources may not be the best choice.
Is your retirement income just not enough to live on?
According to a new study from the Families and Work Institute in New York and the Sloan Center on Aging & Work at Boston College, 18% of seniors still work because they do not have enough income from other sources. If that is your situation, a reverse mortgage may be the solution to allow you to retire.
Obviously, it all depends on whether the reverse mortgage could provide enough income to replace your current income from a job.
Do you need health insurance?
Many seniors continue to work until they are 65, not because they want to, but because they need health insurance. Medicare does not kick in until age 65.
A reverse mortgage could allow you to retire, and the proceeds could be used to cover the costs of health insurance until Medicare kicks in.
Are you trying to save more money for retirement?
Many people keep working well into their retirement years to retire more comfortably. I highly respect this choice. However, I often wonder how many of these people would keep working to save more for retirement if they understood how a reverse mortgage could be utilized during their retirement.
Regardless of your reasons for working, I would still encourage you to look at what options a reverse mortgage could provide and how it could impact you financially during your retirement.