“I never imagined that retirement would be so difficult. My dreams of travel and enjoyment are gone as I struggle to make ends meet each month. I don’t want to depend on my children, so I don’t tell them how tight my budget is. They have their own families to raise and care for.” ~ KL, Denver
There are thousands of older Americans who are struggling to make their mortgage payments, and pay other bills after they retire. Unlike their parents, who had the family home paid for by the time they retired, these folks are looking at paying a mortgage well into their 80s and for some, into their 90s. The cruelty of this situation cannot be overstated.
In the attempt to “leave the house to the kids,” these seniors are forfeiting peace of mind, comfort and enjoyment in their later years. There is often no money for entertainment or travel, and only through very careful budgeting of severely limited resources do they manage at all. Any event out of the ordinary such as new tires or maintenance on the car or house jeopardizes their precarious financial position.
Children are often oblivious as proud parents do not want to admit their untenable position to their kids. In actual fact, the children often do not want their parents’ home and plan to sell it after their parents pass away. If the children realized the difficult situation in which their parents struggle, they would be very happy to see their parents’ home turned into an asset to provide peace of mind and a more comfortable financial life for their folks.
The world has changed, and with it the function of the family home. Rather than being the center of the family drawing the children, grandchildren and great-grandchildren to a central location, many seniors find that life is busy for the younger generations and visits to the “old homestead” are infrequent.
Today the family home is the security needed for the seniors who live there. All their lives they have worked hard and paid their bills. For the first time, in their old age, they are looking at scarcity and the pressure of making a fixed retirement income stretch through the month. Many find it difficult to make ends meet.
A reverse mortgage is becoming an increasingly popular method for reducing the stress of bills and providing a vehicle for accessing funds for emergencies such as medical bills, in-home care, or just for fun. The tax-free income can be used for any purpose and seniors report that the peace of mind that they have gained through use of a reverse mortgage is priceless.
Contact your reverse mortgage specialist to discuss the possibilities.
This article first appeared in My Primetime News, December 3, 2015.
Tags: reverse mortgage