Housing is often considered one of the biggest expenses impacting retiree’s savings, however, using a reverse mortgage can help minimize these costs during retirement, suggests a recent article from U.S. News & World Report.
The article highlights six major expenses for retirees, providing suggestions for how to minimize these costs during retirement. One of those suggestions, though briefly noted, includes the possibility of using a reverse mortgage to tap into home equity, as a way for retirees to “put more cash in their pockets.”
Although household expenses decline with age, falling on average almost 20% between ages 65-75, according to data from the Employee Benefit Research Institute cited in the article, retirees are still faced with a number of expenses to pay for during their non-working years.
These may include health care, taxes, transportation, travel and expenses associated with caring for one’s adult children, such as paying for weddings, helping with a downpayment for their first house or even contributing to a college fund for grandchildren.
Read more about these expenses at U.S. News & World Report.
Written by Jason Oliva
