MAY 8, 2019
Clients who risk running out of money in retirement can likely benefit from a reverse mortgage, especially if they take out the mortgage early in retirement, according to Christopher Mayer, chief executive at mortgage lender Longbridge Financial, and Wade Pfau, professor of retirement income at The American College.
See comments and editorial observations at the end of this article.
Ken Fisher, Special to USA TODAY Published 7:40 a.m. ET April 28, 2019 | Updated 12:39 p.m. ET April 28, 2019
Introduction According to recently-released data from the Census Bureau and Bureau of Labor Statistics (BLS), the percentage of retirement-age Americans in the labor force has doubled since 1985, from its all-time low of 10 percent in January of that year to 20 percent in February 2019.1
To understand who is continuing to work and why, we gathered data on retirement-age Americans’ incomes, health, and activities from the Census Bureau, Bureau of Labor Statistics, and Centers for Disease Control (CDC), finding: The share of retirement-age Americans in the labor force has doubled since its all-time low in 1985.
First-of-its-kind study identifies large, neglected ‘middle market’ for seniors housing and personal care needs
54% of middle-income U.S. seniors will not be able to meet yearly costs of $60,000 for assisted living rent and other costs, even if they committed 100% of their annual financial resources
Government and industry interventions urgently needed to meet needs of projected 14.4 million middle-income people over age 75, many with multiple chronic conditions
ANNAPOLIS, MD, April 24, 2019 — Demographic shifts in the United States over the next decade will nearly double the number of middle-income seniors ages 75 and over—more than 14 million people—lacking the financial resources to afford seniors housing with supportive personal care services, a new study shows.
The study, published today by the journal Health Affairs and also scheduled to appear in its May 2019 edition, identifies a vast new ‘middle market’ for the seniors housing and care industry and underscores the need for government and private sector actions to ensure middle-income seniors can afford the housing and care they will need.
by Wade Pfau, 4/15/19
Press coverage around reverse mortgages has grown more positive in recent years as new research has helped to explain how they can improve the prospects of an overall retirement income plan. However, a lingering question remains about the costs of reverse mortgages. Costs can be high, which leaves people wondering how their benefits can be justified.