As seniors increasingly look to alternatives to supplement their retirement income, reverse mortgages have grown in popularity as a strategy to help offset the rising costs of health care, The Bristol Press reports.
“They permit house-rich but cash-poor elders to use their housing equity to, for example, pay for home care while they remain in the home, or for nursing home care later on,” writes Daniel O. Tully, elder law attorney and columnist for The Bristol Press.
Previous reports have shown that a typical married couple on the eve of retirement need to save roughly $250,000 to have a 90% chance of paying their medical bills. Still, 26% of 50- to 64-year-olds have not saved any money for retirement.
And with trouble on the horizon for the Social Security fund, Americans are increasingly considering the advantages of a reverse mortgage.
“One solution, which is growing in popularity, is to tap into the equity built up in your home,” Tully writes.
Read the full article here.
Written by Emily Study
