According to the Government Accountability Office, 1/3rd of seniors age 55 and over do not have even a penny of retirement savings, and well over 50% have less than they need to live comfortably.
For the children of seniors that are limited in their retirement, there may come a time when you need to come up with some creative solutions for your parents in order to make sure they get a chance to live comfortably and be cared for the next many years. In some cases, that means you may want to recommend a reverse mortgage.
Recommending a Reverse Mortgage to Your Parents
You always have your parent’s best interests in mind, and that sometimes means making some recommendations to them to help with their financial future. A reverse mortgage could allow your parents to let their home pay them back.
With a reverse mortgage, your parents can continue to live in their home throughout their retirement and receive a cash lump sum, monthly payments, or line of credit.
As the children of a senior parent, there are times when it may be worth recommending a reverse mortgage. This can be a tough conversation, but there are situations when a reverse mortgage can be a good option for your parent’s future, including:
- When They Do Not Have Enough Retirement Savings – If your parents have not saved enough for retirement, a reverse mortgage loan can be a great way to provide some financial relief.
- When You Aren’t in a Great Financial Position – Children often feel a responsibility to help their parents financially after retirement. But not everyone can afford to do this. A reverse mortgage loan could take some of the pressure off of you.
- When You Have Your Own Home and Retirement Plan – Some parents want to keep their home so that they can pass it down to their children. But if you already have a home of your own and retirement savings, it can be helpful to let your parents use their home equity for their financial needs.
These are only a few of the situations when it may be worthwhile to start discussing a reverse mortgage loan with your parents, and ensuring that they are making the best choices for their financial futures.
For more information about reverse mortgages, please contact me today!