According to research from the Boston College for Retirement Research retirement ages were higher decades ago compared to today’s average age of retirement.
Research from the 1960s shows the average retirement age for the decade was actually over the age of 65. That average is higher than the average for today’s retirees. The average age of retirees today is just below 65.
That trend may start to rise as many baby boomers are choosing to postpone retirement. What are some of the reasons for the delay in retirement? Many baby boomers are choosing to work until after their 65th birthday when they can apply for Medicare. Many baby boomers do not want to run the risk of retiring and not having any medical coverage, afraid of a health problem happening during the time they have no medical coverage.
Some baby boomers are delaying retirement so when it comes time to collect Social Security they will receive a larger amount. While you can qualify to receive Social Security at age 62, many baby boomers are delaying until they are almost 70 (the longest you can delay collecting Social Security). Social Security payment can go up as much as 8 percent for every year you wait to collect. It is also best to collect Social Security after you retire because the government uses a formula based on how much you earn to determine your payout.
Another reason baby boomers are delaying retirement is simply because they cannot afford to retire. With the decline of the stock market many baby boomers lost a large amount of their nest egg for retirement and can simply not retire.
But it’s not all bad for baby boomers. Boomers have the option of a Reverse Mortgage to compliment their current retirement plan. A Reverse Mortgage allows baby boomers 62 and older access the equity they have built up in their homes. It eliminates the current monthly mortgage payment* and gives them tax-free** cash to use any way they want. The only requirements currently with a reverse mortgage are your home is your primary residence, you are 62 or older, and you have sufficient equity in your home.
If you are thinking about a reverse mortgage, give us a call today at (800) 442-6862. One of your licensed professionals will answer any questions you may have about the reverse mortgage process.
The graph below shows the trends of the average retirement age of men over man decades. Sorry ladies, a graph was not available for women!
*Homeowner is still responsible for taxes, insurance and property maintenance.
**Please consult with your financial advisor.