HSBC conducted a study that doesn’t paint the prettiest of pictures for Americans facing retirement.
The study, entitled “The Balancing Act” suggests that many are not ready for nor will they feel comfortable heading for retirement. More than 1/3 of people in the workforce don’t have the highest of hopes when it comes to maintaining a comfortable retirement and over 2/3 of people are worried they will run out of money.
The study suggests that one of the main reasons people are not adequately prepared for retirement is that they have a mortgage and once they stop working, the mortgage payments will become more of a burden. And, more than 33% of those in retirement feel they are worse off than expected as they should have saved more.
To soften that blow, you can always get a reverse mortgage (if you have enough equity) to pay off your current mortgage. By doing so, you’ll be able to get tax free cash and won’t have to worry about another monthly mortgage payment. There are many different types of reverse mortgages so it’s best that you contact a reverse mortgage professional to go over your options. This video explains the difference between the 2 most popular choices when it comes to a reverse mortgage.
To view the HSBC study, please click this link.