The latest United States of Aging Survey found that adults ages 60 and above are increasingly more confident in their financial state than seniors were in 2012 and 2013.
The survey conveyed that more seniors can comfortably pay their monthly bills today (69% of respondents found that they can easily pay their monthly bills), in comparison to 66% of respondents in 2013, and 64% of respondents in 2012.
But it may not be finances that is driving this upward trend in senior confidence levels.
More seniors attribute their positive outlook to spirituality and faith, rather than financial security. In fact, finances are consistently ranked as one of the least important factors when it comes to senior optimism.
Instead, seniors value the ability to age in place, retain their independence, and have meaningful relationships with friends, spouses, children, and grandchildren over being financially secure. Although no one expects finances to disappear from being a main stressor in retirement, seniors are recognizing that finding a purpose in retirement is the most rewarding way to live their retirement dreams.
However, finances do become a concern when they get in the way of accomplishing your lifestyle goals. Healthcare costs remain a top concern for seniors especially with baby boomers expected to live longer than any generation before them.
77% of survey respondents voiced that they value the ability to age in place. Remaining in one’s home as long as possible is a priority for many of today’s independent seniors who wish to stay active, independent, in touch with colleagues, and a part of the workforce as they age.
In order to continue to age in place, seniors will need more assistance with caregiving, home up-keep, and transportation –all of which propose new expenses that could keep seniors back from accomplishing their retirement dreams.
Use a reverse mortgage to become financially confident
A reverse mortgage is an excellent way to boost your financial confidence, but more importantly, to improve your life. A reverse mortgage is a financial tool specifically designed for seniors ages 62 and above who have sufficient equity in their homes. The reverse mortgage program allows you to access the equity in your home and use the money towards whatever it is that will make your lifestyle more affordable and comfortable. While many borrowers use a reverse mortgage to pay off the existing mortgage on their home, there are many others who are taking advantage of a reverse mortgage so that they can finance retirement travel, pay for home improvement projects, or simply set aside money in an emergency savings fund which is an ideal use for the line of credit option.
When you call a One Reverse Mortgage licensed expert you will not only be asked about your home, but asked about your lifestyle and retirement goals. It is important that our bankers understand what you want to accomplish so that they can best select the option that fits your needs. (MORE: Why I recommended a reverse mortgage to my grandparents)